Monopolistic competition is characterized by
A) relative ease of entry into the market.
B) a standard, undifferentiated product.
C) persistent long-run economic profits.
D) a horizontal demand curve faced by all firms.
Answer: A
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Which of the following statements is TRUE?
A) The long-run aggregate supply curve is upward sloping. B) The long-run aggregate demand curve is upward sloping. C) The short-run aggregate supply curve is vertical. D) The long-run aggregate supply curve is vertical.
Under the Bretton Woods system, devaluation was:
a. normal b. routine c. rare d. a last resort
A decrease in the money supply creates an excess
a. supply of money that is eliminated by rising prices. b. supply of money that is eliminated by falling prices. c. demand for money that is eliminated by rising prices. d. demand for money that is eliminated by falling prices.
The last time you went on a road trip, you noticed that there were several fast food outlets clustered near some freeway exits, but none at the others. Now that you are familiar with Hotelling's model, you know that the reason for this is:
A. firms vying for a favorable location. B. the existence of fast food cartels. C. zoning laws. D. failure by the firms to correctly distribute themselves.