Exhibit 9-1 A monopolistic competitive firm
?
In the long run, the demand curve for the monopolistic competitive firm shown in Exhibit 9-1:
A. shifts leftward.
B. remains the same.
C. shifts rightward.
D. becomes more inelastic.
Answer: A
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The pressure on corporate executives to maintain the market price of their company's stock gives them an incentive to
A) engage in insider trading. B) ignore the political consequences of what they do. C) produce goods subject to rapid obsolescence. D) pursue short-run profits at the expense of the company's long-run welfare. E) take account in their decisions of the probable long-run effects.
Assume that the central bank lowers the discount to increase the nation's monetary base. If the nation has highly mobile international capital markets and a fixed exchange rate system, what happens to the real GDP and the monetary base in the context of the Three-Sector-Model? State your answer after the macroeconomic system returns to complete equilibrium
a. Real GDP rises and monetary base rises. b. Real GDP rises and monetary base falls. c. Real GDP and monetary base fall. d. Real GDP and monetary base remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.
Assume the development of a new technology that allows widgets to be produced for less. Also, assume that widgets are a key input in the production of whatchamacallits. As a result of this new technology, what would an economist expect to happen in the market for whatchamacallits?
a. the demand curve will shift to the left b. the supply curve will shift to the left c. the demand curve will shift to the right d. the supply curve will shift to the right e. none of the above
Which of the following is FALSE?
A. 1 + MPS = MPC B. 1 - MPC = MPS C. MPC + MPS = 1 D. 1 - APS = APC