Which of the following is the most distinguishing characteristic of a monopolistically competitive industry?
a. Market barriers
b. One firm controls the industry
c. Product differentiation
d. A small number of firms dominate the market
c
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Which of the following is included as investment in GDP?
i. cars produced during the year but unsold at the end of the year ii. new capital equipment produced and purchased during the year iii. purchases of a company's stocks and bonds A) i only B) ii only C) iii only D) i and ii E) i, ii, and iii
To say that demand is elastic means that
A) people do not like the good very much. B) quantity demanded not very responsive to price changes. C) relatively small changes in price lead to relatively large changes in quantity demanded. D) relatively small changes in quantity demanded lead to relatively small changes in price.
According to the traditional view of the production function, which of the following values of the additions to output per worker would be consistent with moving from 5 to 6, and then from 6 to 7, and then from 7 to 8 units of capital per worker in that order?
a. 40, 40, 40 b. 40, 35, 38 c. 40, 34, 32 d. 40, 43, 48
If government expenditures exceed tax receipts in a developing country, the government is most likely to:
A. increase taxes. B. cut spending. C. sell bonds to the central bank. D. buy bonds from the central bank.