Which of the following is true about perfect competition?
a. Since a perfectly competitive seller can sell all he wants at the market price, her demand curve is horizontal at the market price over the entire range of output that she could possibly produce.
b. Because perfectly competitive markets have many buyers and sellers, each firm is so small in relation to the industry that its production decisions have no impact on the market.
c. Perfectly competitive markets have easy entry and exit.
d. All of the above are true about perfect competition.
Question 2
Which of the following transfer programs in the U.S. is funded by a national tax but administered by state governments?
a. Social security
b. Veterans' Administration Benefit program
c. Unemployment insurance
d. Food stamps
e. National Guard activities
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