1.Perfect competition is important to study because it: a. is a theoretical extreme used for analysis.b. is a realistic model of a few key markets.c. is a realistic model of many different markets.d. avoids all real-world problems and complexities.
Self-Quiz 3
1.Which of the following statements is false? a. The income effect of normal goods counters the substitution effect so the demand curve is upsloping.b. The income effect and the substitution effect reinforce each other when there are price changes for
Self-Quiz 2
1.The law of demand implies that: a. consumers are not responsive to price changes.b. consumers will, all other things unchanged, buy more at lower prices.c. sellers will, all other things unchanged, offer more on the market at higher prices.d. sellers
Self-Quiz 1
1. According to the textbook, economics is a: a. social science.b. study of business decisions, not social decisions.c. part of operations and management science.d. part of humanities.