Which of the following is TRUE regarding perfect competition? I. The firms are price takers. II. Marginal revenue equals the price of the product. III. Established firms have no advantage over new firms

An example of a unilateral transfer is

A) a gift to a relative who lives abroad. B) a check received in payment for an import. C) gold payments to foreign companies. D) SDR payments to world creditors.

A decrease in demand and a decrease in supply will lead to

A) unambiguous increases in both price and quantity. B) unambiguous decreases in both price quantity. C) an unambiguous decrease in price, but the effect on quantity is indeterminate. D) an unambiguous decrease in quantity, but the effect on price is indeterminate.