If a Specific Market Is Quite Small Relative to the Entire

question 10

Multiple Choice

If a specific market is quite small relative to the entire economy

• A) government intervention is necessary to link it to other markets.
• B) partial- equilibrium analysis is the only tool available to understand this market.
• C) general- equilibrium analysis will be necessary in order to understand this market.
• D) the feedback effects on this market from induced changes in other markets will be very small.
• E) changes in this market will have considerable effects on other markets.

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Definitions:

Bill Of Material

An itemized inventory necessary for the production process, detailing all components and materials required.

Kit For Production

A set of parts or components that are packaged together and used in the manufacturing process to create a final product.

"Pseudo"

A prefix used to describe something that is false or pretend; not genuine.