Which of the following is NOT a characteristic of firms in a monopolistically competitive market?
A) advertising
B) differentiated products
C) ease of entry and exit
D) existence of significant economies of scale
D
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How do specialized lending channels created by central banks affect the economy during a recession?
What will be an ideal response?
If firms pay what are called "efficiency wages," they pay wages that
A) are lower than average to ensure maximum profit. B) are mandated by the government. C) will eventually lower the unemployment rate. D) motivate workers to increase their productivity.
If planned spending exceeds planned output in an economy, the result is a(n) _____
a. increase in inventories b. decrease in gross domestic product c. decrease in imports d. increase in government purchases e. unintended decrease in inventories
Which of the following would an economist classify as capital?
A. 100 shares of Microsoft stock. B. $50 bill. C. credit card. D. lawyer's personal computer.