Which of the Following Is Not an Assumption of the Perfectly

question 9

Multiple Choice

Which of the following is not an assumption of the perfectly competitive model?

• A)All consumers know all prices.
• B)The consumers of any given good or service are identical.
• C)In any given market, the products of all firms are identical.
• D)Individuals consume or produce small parts of output.

Analyze how consumption, saving, and income levels are interrelated through various economic models and functions.

Understand the concept of disposable income and how it relates to consumption and saving.

Calculate induced consumption from given levels of disposable income.

Define and explain autonomous consumption.

---

Definitions:

Convergent Thinking

Thinking that produces one correct answer; characteristic of the kind of thinking required on conventional intelligence tests.

General Intelligence

The theory that a single, general intelligence factor underlies all cognitive abilities, allowing individuals to perform a wide range of cognitive tasks.

Correct Answer

An accurate response or solution to a particular question or problem.

Mental Retardation

An outdated and insensitive term formerly used to describe individuals with below-average intellectual functioning and significant limitations in adaptive behaviors; now more commonly referred to as intellectual disability.