Which of the following characteristics of a competitive market make auction sites such as eBay so popular?
A) There is freedom of entry and exit.
B) There are very low transaction costs.
C) There are only one or two sellers.
D) Buyers and sellers have complete information.
B
Economics
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A Consumer Price Index adjustment overcompensates for inflation because it ignores
A) the income effect when relative prices change. B) the substitution effect when relative prices change. C) that some goods are inferior. D) that the substitution effect may offset the income effect.
Economics
The broadest measure of the price level that includes all final goods and services is
A) the producer price index . B) the consumer price index. C) the GDP deflator. D) the wholesale price index.
Economics