Which of the following features is characteristic of monopolistic competition?
a. many large producers
b. homogeneous products
c. differentiated products
d. No individual producer has any influence on the market price.
Ans: c. differentiated products
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Everything else being constant, a lower real interest rate
A) increases desired saving and net exports. B) decreases desired saving but increases net exports. C) increases desired saving and investment. D) increases desired investment but decreases net exports.
It is difficult to get the necessary information to apply corrective taxes in the real world, thus _____
a. most government reluctantly apply to reduce negative externalities b. use regulation to reduce negative externalities c. use moral suasion to reduce negative externalities d. most governments fail to do anything to reduce negative externalities
In a bilateral monopoly, wages and employment are determined by
A. The intersection of market supply and demand. B. The intersection of marginal cost and marginal revenue product. C. Negotiation. D. The intersection of marginal wage and market demand.
Economists who criticize trade adjustment assistance argue that:
A. it only benefits a very small fraction of all unemployed workers. B. money spent on the program overstimulates aggregate demand and threatens to cause inflation. C. benefits are too low to provide unemployed workers with a livable wage. D. it distorts patterns of foreign trade, reducing the gains from trade.