Use the following graph for a monopolistically competitive firm to answer the next question.
A successful advertising campaign by the firm will cause its demand curve to shift from
A. B to A and become more elastic.
B. A to B and become more elastic.
C. A to B and become less elastic.
D. B to A and become less elastic.
Answer: C
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If an economy consumes 75 percent of any increase in real GDP and spends 10 percent of this increased income on imports, then a decline in government spending by $60 million will result in a total reduction in equilibrium income of:
a. $171.43 million. b. $123.47 million. c. $151.63 million. d. $73.47 million. e. $71.43 million.
Total surplus is
a. equal to consumer surplus minus producer surplus. b. equal to the total value to buyers minus the total cost to sellers. c. equal to consumers' willingness to pay plus producers' cost. d. greater than the sum of consumer surplus plus producer surplus.
Briefly explain how the increase in the cost of health care might partially be a measurement problem due to changing quality of care.
What will be an ideal response?
The interest on loans paid by businesses is called
A. retained earnings. B. net factor payments. C. net interest. D. depreciation.