Question 17(Multiple Choice Worth 4 points) (02.04 MC) Which product exists in a purely competitive market? Gasoline Shampoo A peach A shirt Question 18/Multiple Choice Worth 4 points) (02.09 MC) Your community faces a challenging issue. You will serve on a volunteer committee to evaluate and make a recommendation to the city council. Which economic process will help your committee identify all potential solutions to the issue? Marginal cost and revenue analysis Rational decision-making model Circular-flow diagram Cost-benefit analysis

## Step1<br />Question 17 is about understanding the concept of a purely competitive market. In a purely competitive market, there are many sellers and buyers, and the products are identical. This means that the products are perfect substitutes for each other. <br /><br />## Step2<br />Looking at the options, we need to identify which product is a perfect substitute for all other products. In this case, a peach is a perfect substitute for all other peaches, regardless of the seller. This is because all peaches are identical in a purely competitive market.<br /><br />## Step3<br />Question 18 is about understanding the economic processes that can be used to identify potential solutions to a problem. The options provided are different economic processes, and we need to identify which one is best suited for identifying all potential solutions.<br /><br />## Step4<br />The rational decision-making model is the best suited for this task. This model involves identifying the problem, gathering information, identifying alternatives, weighing the evidence, choosing among the alternatives, taking action, and reviewing the decision and its consequences. This process allows for a comprehensive evaluation of all potential solutions.