In monopolistic competition there is/are
A) many sellers who each face a downward-sloping demand curve.
B) a few sellers who each face a downward-sloping demand curve.
C) only one seller who faces a downward-sloping demand curve.
D) many sellers who each face a perfectly elastic demand curve.
Answer: A
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Compared to the other tools the Fed uses to change the money supply, the discount window is used:
A. less often than open market operations, but more often than the reserve requirement. B. more often than open market operations and the reserve requirement. C. about the same as open market operations, but more often than the reserve requirement. D. more often than open market operations, and about the same as the reserve requirement.
The fiscal year
A. Is the 12-month period used for federal government accounting purposes. B. Is the period during which the government must balance the budget. C. Begins in January for the federal government. D. None of the choices are correct.
If products were in short or surplus supply in the Soviet Union:
A. price and profit signals eliminated those shortages and surpluses. B. price and profit signals intensified those shortages and surpluses. C. producers would not react because no price or profit signals occurred. D. the planners would immediately adjust production to achieve equilibrium.
In the case of perfectly elastic supply, the supply curve is:
A. upward sloping. B. downward sloping. C. vertical. D. horizontal.