An Identity Is an Equation That

question 55

Multiple Choice

An identity is an equation that

• A)describes an equilibrium.
• B)pertains to macroeconomics,not to microeconomics.
• C)must be true because of how the variables in the equation are defined.
• D)involves final goods,not intermediate goods.

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Definitions:

Marijuana

A psychoactive drug from the Cannabis plant used for medical or recreational purposes.

Competitive Market

A market structure where multiple firms sell products that are similar or identical, and no single firm can influence the market price on its own.

Market Price

The rate at which a service or asset can presently be bought or sold within a specific market.

Market Economy

A system where the economy and the prices of goods and services are determined entirely by the collective actions of a country's individuals and companies.