Constitutions

question 11

Multiple Choice

Constitutions:

• A)Define the powers of the government
• B)Establish the structure of the government
• C)Define the rights of the people
• D)All of the above
• E)Answers a and c above

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Definitions:

Market Price

The price at which a good or service can be bought or sold in a marketplace, determined by supply and demand.

Perfect Competition

A market structure characterized by a large number of small firms, a homogeneous product, free entry and exit, and perfect information.

Inelastic Demand

Demand that responds somewhat, but not a great deal, to changes in price. Inelastic demand always has a numerical value between zero and 1.

Zero Profits

A situation where a firm’s total revenues are exactly equal to its total costs, leading to no net profit or loss.