A sociologist is studying influences on family size. He finds pairs of sisters, both of whom are married, and determines for each sister whether she has 0, 1, or 2 or more children. He wants to compare older and younger sisters. Explain what the following hypotheses mean and how to test them. a. The number of children the younger sister has is independent of the number of children the older sister has. b. The distribution of family sizes is the same for older and younger sisters. Could one hypothesis be true and the other false? Explain.
1. A key characteristic of a competitive market is that a. government antitrust laws regulate competition. b. producers sell nearly identical products. c. firms minimize total costs. d. firms have price setting power. 2. Because the goods offered for sale in a competitive market are largely the same, a. there will be few sellers in the market. b. there will be few buyers in the market. c. only a few buyers will have market power. d. sellers will have little reason to charge less than the going market price. 3. Which of the following industries is least likely to exhibit the characteristic of free entry a. restaurants b. municipal water and sewer c. soybean farming d. selling running apparel
