In part, perfect competition arises if i. each firm's minimum efficient scale is large relative to demand. ii. each firm produces a good or service identical to those produced by its many competitors. iii. there are significant barriers to entry
A) i only
B) ii only
C) i and ii
D) iii only
E) ii and iii
B
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In the United States, currency includes
A) paper money and coins in circulation. B) checking and savings account deposits. C) gold, silver, and paper money. D) traveler's checks.
A relatively steep money demand schedule reflects the assumption that the interest elasticity of money demand is
a. low (in absolute value). b. high (in absolute value). c. zero. d. indefinite.
If a market system is functioning well, we can conclude that goods with
a. high opportunity costs tend to have high money costs. b. low opportunity costs tend to have high money costs. c. high opportunity costs tend to have low money costs. d. low opportunity costs tend to have zero money costs. e. high opportunity costs tend to have zero money costs.
As the rate of inflation increases, the increased cost to a consumer of more frequent trips to the bank to make cash withdrawals represents an increase in the:
A. tax distortion generated by inflation. B. erosion of the purchasing power of cash. C. "noise" in the price system. D. shoe leather costs of inflation.