In Reality, Because Few Markets Are Perfectly Competitive, Some Loss

question 198

True/False

In reality, because few markets are perfectly competitive, some loss of economic efficiency occurs in the market for nearly every good or service.

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Definitions:

World Price

The price at which goods are traded internationally, determined by supply and demand in the global market.

Domestic Price

Domestic price is the price of a good or service within a country, influenced by local supply and demand conditions, taxes, and subsidies.

Exports and Imports

involve the selling of goods and services to other countries (exports) and buying goods and services from other countries (imports), crucial components of a country's economy.

Frederic Bastiat

Frederic Bastiat was a French economist and writer known for his advocacy of free markets and critique of protectionism, best remembered for his works such as "The Law" and "Economic Sophisms."