The large-number-of-sellers condition of perfect competition is met whenÂ
A. there are more sellers than buyers in the market.
B. there are more than 50 firms in the industry.
C. there are more than 100 firms in the industry.
D. each firm is so small relative to the total market that no single firm can influence the market price.
Answer: D
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The strongest argument for an independent Federal Reserve rests on the view that subjecting the Fed to more political pressures would impart
A) an inflationary bias to monetary policy. B) a deflationary bias to monetary policy. C) a disinflationary bias to monetary policy. D) a countercyclical bias to monetary policy.
The signaling aspect of the market system refer to
A) legal requirements for contracts and exchanges. B) the price of the good to the consumer and producer. C) the voluntary character of the exchange. D) transaction costs of carrying out exchanges.