Monopolistic competition is similar to monopolies in that
A. both have downward sloping demand curves.
B. both have identical demand and marginal revenue curves.
C. both make zero economic profits in the long run.
D. both have unique products with no close substitutes.
A. both have downward sloping demand curves.
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To find the cost of the CPI market basket in the current period we have to multiply the
A) quantities in the CPI market basket by the base period prices. B) quantities in the CPI market basket by the current period prices. C) current period quantities in the CPI market basket by the base period prices. D) current period quantities in the CPI market basket by the current period prices. E) quantities in the CPI market basket by the base period prices and then multiply by 100.
Select the phrase that correctly completes the following statement. "A decrease in the number of manufacturers caused a decrease in the supply of sailboats. As a result,
A) the price of sailboats increased and the demand for sailboats decreased." B) the equilibrium quantity of sailboats increased." C) the price of sailboats increased. The higher price caused the supply of sailboats to increase." D) the price of sailboats increased and the quantity of sailboats demanded decreased."
Increased levels of consumption:
a) Shift aggregate supply outwards so more is supplied at each price b) Shift aggregate supply inwards so less is supplied at each price c) Shift aggregate demand outwards so more is demanded at each price d) Shift aggregate demand inwards so less is demanded at each price
Which one of the following is a tool of monetary policy for altering the reserves of commercial banks?
a. Treasury deposits b. Federal Reserve Notes c. Reserve ratio d. Budget surplus or budget deficit