A monopolistically competitive industry has
A. many firms producing a differentiated product.
B. many firms producing an identical product.
C. a few firms producing a differentiated product.
D. a few firms producing an identical product.
A. many firms producing a differentiated product.
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From an economics standpoint, the Articles of Confederation did not provide for
(a) levying taxes to support a central government. (b) regulating interstate commerce. (c) enforcing laws, because no federal judiciary was authorized. (d) any of the provisions mentioned above.
In the case of a natural monopoly, as the number of firms in the industry increases, the average cost of producing a:
A. fixed number of units stays the same. B. fixed number of units decreases. C. variable number of units stays the same. D. fixed number of units increases.
Suppose that cruise ship employees are laid off during a period of significant decrease in demand for cruise vacations because they have a 3-year contract which has locked their wages into place. This example is consistent with the
A. social contract explanation of unemployment. B. relative-wage explanation of unemployment. C. efficiency wage explanation of unemployment. D. explicit contract explanation of unemployment.
In a large open economy like the United States, an increased government budget deficit which reduces national saving
A. reduces investment and reduces the current account balance. B. reduces investment and improves the current account balance. C. has no effect on investment, but reduces the current account balance. D. has no effect on either investment or the current account balance.