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1、Chapter4/TheMarketForcesofSupplyandDemandv395Chapter4TheMarketForcesofSupplyandDemandTRUE/FALSE1.Pricesallocateamarketeconomy’sscarceresources.ANS:TDIF:1REF:4-0NAT:AnalyticLOC:Markets,marketfailure,andexternalitiesTOP:MarketeconomiesMSC:Definitional2.Inamarketeconomy,supplyanddemandd
2、etermineboththequantityofeachgoodproducedandthepriceatwhichitissold.ANS:TDIF:1REF:4-0NAT:AnalyticLOC:Markets,marketfailure,andexternalitiesTOP:MarketeconomiesMSC:Definitional3.Amarketisagroupofbuyersandsellersofaparticulargoodorservice.ANS:TDIF:1REF:4-1NAT:AnalyticLOC:Markets,marketf
3、ailure,andexternalitiesTOP:MarketsMSC:Definitional4.Sellersasagroupdeterminethedemandforaproduct,andbuyersasagroupdeterminethesupplyofaproduct.ANS:FDIF:1REF:4-1NAT:AnalyticLOC:SupplyanddemandTOP:Demand
4、SupplyMSC:Definitional5.Ayardsaleisanexampleofamarket.ANS:TDIF:2REF:4-1NAT:Analyti
5、cLOC:Markets,marketfailure,andexternalitiesTOP:MarketsMSC:Applicative6.Anewspaper’sclassifiedadsareanexampleofamarket.ANS:TDIF:2REF:4-1NAT:AnalyticLOC:Markets,marketfailure,andexternalitiesTOP:MarketsMSC:Applicative7.Mostmarketsintheeconomyarehighlycompetitive.ANS:TDIF:1REF:4-1NAT:An
6、alyticLOC:Markets,marketfailure,andexternalitiesTOP:MarketsMSC:Definitional8.Inacompetitivemarket,thequantityofeachgoodproducedandthepriceatwhichitissoldarenotdeterminedbyanysinglebuyerorseller.ANS:TDIF:1REF:4-1NAT:AnalyticLOC:Markets,marketfailure,andexternalitiesTOP:Competitivemark
7、etsMSC:Definitional9.Inacompetitivemarket,therearesofewbuyersandsofewsellersthateachhasasignificantimpactonthemarketprice.ANS:FDIF:1REF:4-1NAT:AnalyticLOC:Markets,marketfailure,andexternalitiesTOP:CompetitivemarketsMSC:Definitional10.Inaperfectlycompetitivemarket,thegoodsofferedforsa
8、leareallexactlythesame.ANS:TDIF:1REF:4-1NAT:AnalyticLOC:PerfectcompetitionTOP:PerfectcompetitionMSC:DefinitionalChapter4/TheMarketForcesofSupplyandDemandv39511.Inaperfectlycompetitivemarket,buyersandsellersarepricesetters.ANS:FDIF:1REF:4-1NAT:AnalyticLOC:PerfectcompetitionTOP:Perfect
9、competitionM
