Which of the following is true in a perfectly competitive market?
a. The sellers can partially influence the price level in the market.
b. All firms have identical costs.
c. Entry or exit of new sellers into the market is restricted.
d. Buyers and sellers have incomplete information about the product and the market.
C
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For a closed economy with no government, we know that at every level of GDP actual investment equals
A) the difference between planned investment and actual saving. B) the difference between planned saving and actual saving. C) planned investment. D) planned saving.
If more foreign auto plants relocate to the United States, we would expect
A) the U.S. supply curve for automobiles to shift to the right. B) the U.S. supply curve for automobiles would shift to the left. C) that the U.S. auto market would not respond. D) that U.S. auto demand might change, but U.S. auto supply would remain static.