Which of the following is not a characteristic of "perfect" markets?
A) Buyers and sellers can transact with each other directly if transaction costs are set at an appropriate level.
B) Securities are infinitely divisible.
C) Buyers and sellers know the true quality of what they are buying and selling.
D) All of the above are characteristics of perfect markets.
A
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The principal cause of the housing cycle is natural disaster, such as Midwest floods and California earthquakes
Indicate whether the statement is true or false
The production possibilities curve demonstrates the basic economic principle that
a. economies are always efficient b. assuming full employment, supply will always determine demand c. assuming full employment, an economy is efficient only when the production of capital goods in a particular year is greater than the production of consumption goodsin that year d. assuming full employment, to produce more of any one thing, the economy must produce less of at least one other good e. the production of more consumption goods this year requires the production of morecapital goods this year