We study the simple model of competitive markets because it helps to:
A. show how poorly the economy actually functions.
B. provide useful insights to markets that are not perfectly competitive.
C. indicate whether buyers or sellers matter more.
D. show how the government controls the economy.
Answer: B
Economics
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Why do firms enter into a collusive agreement?
A) To increase profits B) To reduce prices C) To reduce market concentration D) To increase market supply
Economics
When the U.S. Treasury purchases gold from a member of the non-bank public, the immediate effect is that __________ and __________
A) reserves increase; currency in circulation decreases B) reserves decrease; currency in circulation increases C) reserves increase; Treasury deposits decrease D) reserves decrease; Treasury deposits increase
Economics