Which of the Following Is Not a Perfect Market Assumption

question 27

Multiple Choice

Which of the following is not a perfect market assumption?

• A)There is no uncertainty regarding expected returns.
• B)There are no transaction costs.
• C)There are an infinite number of buyers and sellers.
• D)Everyone can borrow and lend at the same interest rate.

---

Definitions:

Rich and Poor

Terms that describe the disparate economic levels and living standards between individuals or groups within a society.

Impartial Observer

A hypothetical individual who is unbiased and evaluates situations or decisions without any prejudice or preconceptions.

Political Philosophy

A field of study that explores fundamental questions about the state, government, politics, liberty, justice, and the enforcement of a legal code by authority.

Negative Income Tax

A proposed fiscal policy where people earning below a certain amount receive supplemental pay from the government instead of paying taxes.