In a perfectly competitive market, producers:
A. are able to sell as much as they want without affecting the market price.
B. can influence the price upward by restricting output.
C. often undercut the competition's price and force firms to leave the market.
D. None of these is true of perfectly competitive markets.
A. are able to sell as much as they want without affecting the market price.
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Which of the following variables is likely to serve as an intermediate target for monetary policy?
A) Money supply B) Inflation rate C) Open-market operations D) Unemployment rate
If a firm hires lazy employees,
A) it must pay them differently or hard-working employees will engage in moral hazard. B) it must pay them more or hard-working employees will engage in moral hazard. C) it must fire them before their laziness spreads to hard-working employees. D) the lazy employees make hard-working employees look good.