Which of the following is NOT a feature of monopolistic competition?
A) significant numbers of sellers in a highly competitive market
B) differentiated products
C) sales promotion and advertising
D) inability of firms to enter or exit the market
Answer: D
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How can the federal budget deficit affect the level of economic growth in the long run?
What will be an ideal response?
Evidence of a chronic balance of payments deficit is:
A. a decline in amount of the nation's currency held by other nations. B. an excess of exports over imports. C. diminishing reserves of foreign currencies. D. an increase in the international value of the nation's currency.
Activists and nonactivists both believe that
a. the self-corrective mechanism of a market economy works quite well. b. macro-policy should seek to minimize economic fluctuations, keep the inflation rate low, and establish an environment consistent with strong economic growth. c. discretionary monetary and fiscal policy can be used successfully to speed the adjustment process and reduce the swings of the business cycle. d. policies that stimulate aggregate demand can reduce the long-term rate of unemployment.
Holding all other forces constant, when the price of gasoline rises, the number of gallons of gasoline demanded would fall substantially over a ten-year period because
a. buyers tend to be much less sensitive to a change in price when given more time to react. b. buyers tend to be much more sensitive to a change in price when given more time to react. c. buyers will have substantially more income over a ten-year period. d. the quantity supplied of gasoline increases very little in response to an increase in the price of gasoline.