For a country to be a price taker in the global market for some good:
A. there must be many buyers all buying a large amount from the market.
B. the quantity it produces and consumes must be very small relative to the total amount of that good bought and sold worldwide.
C. there must be many sellers all supplying a very significant amount to the market.
D. the quantity it produces and consumes must be very large relative to the total amount of that good bought and sold worldwide.
Answer: B
You might also like to view...
When looking at data for unemployment and inflation from the 1970s there is evidence to support the short run Phillips Curve.
Answer the following statement true (T) or false (F)
What do monopolistic competition, pure monopoly, and perfect competition have in common?
a. free entry b. long-run economic profits c. differentiated product d. price taking e. the rule of profit maximization
An example of human capital would be
A. A computer. B. A carpenter's saw. C. Carpentry skills. D. All of the choices are correct.
Other things equal, when Europeans want to buy more grains from the United States:
a. U.S. imports will increase.
b. European exports will increase at every level of domestic income.
c. U.S. exports will increase at every level of domestic income.
d. the U.S. balance of payments will show a deficit.
e. U.S. consumption spending will fall.