Economists Use ____ Economic Analysis to Understand an Individual Market

question 139

Multiple Choice

Economists use ____ economic analysis to understand an individual market. They then use ____ economic analysis to guide future national economic policy.

• A) b and d
• B) macro; micro
• C) positive; normative
• D) normative; positive

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Definitions:

Pure Competition

A market structure characterized by a large number of small firms, identical products, and free entry and exit, leading to perfect competition.

Pure Monopoly

A market structure where a single company or entity is the sole provider of a particular product or service, without any close substitutes.

Oligopoly

A marketplace framework with limited firms having major control over price levels and competitive activities.

Antitrust Violations

Actions that contravene laws designed to prevent anti-competitive practices and promote fair competition in the market.