PS4 - ECON 2106-C Practice Problems for Ch 4. Multiple...

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ECON 2106-C 1 Practice Problems for Ch 4. Multiple Choice Identify the letter of the choice that best completes the statement or answers the question. ____ 1. Which of the following statements is correct? a. Buyers determine supply and sellers determine demand. b. Buyers determine demand and sellers determine supply. c. Buyers and sellers as one group determine supply, but only buyers determine demand. d. Buyers and sellers as one group determine demand, but only sellers determine supply. ____ 2. A competitive market is a market in which a. an auctioneer helps set prices and arrange sales. b. there are only a few sellers. c. the forces of supply and demand do not apply. d. no individual buyer or seller has any significant impact on the market price. ____ 3. Despite the fact that not all markets are perfectly competitive, the study of perfect competition is worthwhile, in part because a. buyers and sellers are price takers in all markets, not just in perfectly competitive markets. b. buyers find it difficult to buy all they want to buy, and sellers find it difficult to sell all they want to sell, in all markets, not just in perfectly competitive markets. c. some degree of competition is present in most markets, not just in perfectly competitive markets. d. perfectly competitive markets are the most difficult markets to analyze, and this makes the study of other types of markets easy in comparison. ____ 4. You lose your job and as a result you buy fewer romance novels. This shows that you consider romance novels to be a(n) a. luxury good. b. inferior good. c. normal good. d. complementary good. ____ 5.
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PS4 - ECON 2106-C Practice Problems for Ch 4. Multiple...

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