What are the characteristics of monopolistic competition?
What will be an ideal response?
Monopolistically competitive industries have many firms, differentiated products, no barriers to entry, and face elastic (but not perfectly elastic) demand curves.
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The figure above illustrates the effect of
A) an increase in real GDP. B) a decrease in real GDP. C) an increase in the monetary base. D) a decrease in the monetary base.
In order for Say's law to hold in a money economy,
A) there must be more than four goods. B) funds saved must give rise to an equal amount of funds earned. C) funds saved must give rise to an equal amount of funds invested. D) none of the above
The fact that U.S. currency is legal tender means:
A. it cannot be backed by gold or other metals. B. U.S. currency is good anywhere in the world. C. private businesses in the U.S. and the U.S. government must accept currency for payment. D. the only money the government will accept for settlement of debts is U.S. currency.
The marginal revenue product represents
A) the marginal physical product of labor divided by the price of the good produced. B) the worker's contribution to the firm's total revenues. C) the worker's contribution to the firm's output. D) the value of each additional unit of output.