Which of the following statements correctly describes a perfectly competitive market?
A) In a perfectly competitive market, individual sellers and buyers can influence the market price.
B) All participants in a perfectly competitive market are price takers.
C) Haggling and bargaining is commonly observed in a perfectly competitive market.
D) Buyers in a perfectly competitive market pay different prices according to their individual demand.
B
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If the economy is at full employment, then the unemployment rate
A) is greater than the natural unemployment rate. B) is equal to the natural unemployment rate. C) is below the natural unemployment rate. D) is equal to zero. E) can be anywhere on a short-run Phillips curve.
While moving on the production possibilities frontier, if the opportunity cost of producing one good is 1/2, the opportunity cost of producing the other good (in the same range) is
A) 1/2. B) 1/4. C) 2. D) 4. E) An amount that cannot be calculated without more information.