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1、Chapter4/TheMarketForcesofSupplyandDemandv287Chapter4TheMarketForcesofSupplyandDemandTRUE/FALSE1.Pricesallocateamarketeconomy’sscarceresources.ANS:TDIF:1REF:4-0NAT:AnalyticLOC:Markets,marketfailure,andexternalitiesTOP:MarketeconomiesMSC:Definitional2.Inamarketeconomy,supplyanddemanddeterminebothth
2、equantityofeachgoodproducedandthepriceatwhichitissold.ANS:TDIF:1REF:4-0NAT:AnalyticLOC:Markets,marketfailure,andexternalitiesTOP:MarketeconomiesMSC:Definitional3.Amarketisagroupofbuyersandsellersofaparticulargoodorservice.ANS:TDIF:1REF:4-1NAT:AnalyticLOC:Markets,marketfailure,andexternalitiesTOP:M
3、arketsMSC:Definitional4.Sellersasagroupdeterminethedemandforaproduct,andbuyersasagroupdeterminethesupplyofaproduct.ANS:FDIF:1REF:4-1NAT:AnalyticLOC:SupplyanddemandTOP:Demand
4、SupplyMSC:Definitional5.Ayardsaleisanexampleofamarket.ANS:TDIF:2REF:4-1NAT:AnalyticLOC:Markets,marketfailure,andexternalitie
5、sTOP:MarketsMSC:Applicative6.Anewspaper’sclassifiedadsareanexampleofamarket.ANS:TDIF:2REF:4-1NAT:AnalyticLOC:Markets,marketfailure,andexternalitiesTOP:MarketsMSC:Applicative7.Mostmarketsintheeconomyarehighlycompetitive.ANS:TDIF:1REF:4-1NAT:AnalyticLOC:Markets,marketfailure,andexternalitiesTOP:Mark
6、etsMSC:Definitional8.Inacompetitivemarket,thequantityofeachgoodproducedandthepriceatwhichitissoldarenotdeterminedbyanysinglebuyerorseller.ANS:TDIF:1REF:4-1NAT:AnalyticLOC:Markets,marketfailure,andexternalitiesTOP:CompetitivemarketsMSC:Definitional9.Inacompetitivemarket,therearesofewbuyersandsofews
7、ellersthateachhasasignificantimpactonthemarketprice.ANS:FDIF:1REF:4-1NAT:AnalyticLOC:Markets,marketfailure,andexternalitiesTOP:CompetitivemarketsMSC:Definitional10.Inaperfectlycompetitivemarket,thegoodsofferedforsaleareallexactlythesame.ANS:TDIF:1REF:4-1NAT:AnalyticLOC:PerfectcompetitionTOP:Perfec
8、tcompetitionMSC:DefinitionalChapter4/TheMarketForcesofSupplyandDemandv28711.Inaperfectlycompetitivemarket,buyersandsellersarepricesetters.ANS:FDIF:1REF:4-1NAT:AnalyticLOC:PerfectcompetitionTOP:PerfectcompetitionM
