Refer to the above figure. Which panel represents a monopolistic competitor that is earning zero economic profits?
A) Panel A
B) Panel B
C) Panel C
D) Panel D
B
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The labor theory of value
A) is what economists believe determines prices today. B) says that wages must always be greater than prices. C) says that the price of a good is determined by the amount of labor required to produce it. D) All of the above.
Keynes believed that changes in autonomous spending were dominated by unstable fluctuations in ________, which are influenced by emotional waves of optimism and pessimism—factors he referred to as "animal spirits."
A) unplanned investment spending B) actual investment spending C) planned investment spending D) autonomous consumer expenditures
The greater the product differentiation between monopolistically competitive firms
A. the greater the price elasticity of demand. B. the higher the average variable costs. C. the lower the barriers to entry. D. the greater the price elasticity of supply.
Which of following is not an important category of bias in human decision making?
A. Temptation. B. Limited processing power. C. Reluctance to change. D. Single-mindedness.