Identify the Truthfulness of the Following Statements

question 43

Multiple Choice

Identify the truthfulness of the following statements.
I. In perfectly competitive markets there are no externalities. That is, actions of decision-makers on each others' well being do not extend beyond those effects transmitted by prices.
II. Partial equilibrium analysis determines equilibrium in a single market, taking the prices and outputs of other markets as fixed.

• A) Both I and II are true.
• B) Both I and II are false.
• C) I is true; II is false.
• D) I is false; II is true.

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Definitions:

Long-term Memory

A type of memory capable of storing large amounts of information for potentially unlimited durations.

Sensory Memory

The shortest-term element of memory, it allows individuals to retain impressions of sensory information after the original stimuli have ended.

Infantile Amnesia

The inability of adults to recall memories from early childhood, typically prior to age 3 or 4.

Memory Decay

The gradual fading or weakening of memories over time due to non-use or passage of time.