Consumers in monopolistically competitive markets face a trade-off between paying prices greater than marginal costs and purchasing products that are more closely suited to their tastes
Indicate whether the statement is true or false
TRUE
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Inflation reduces the average real income in the economy and redistributes purchasing power
a. True b. False
Imports account for approximately ___ percent of U.S. GDP.
A. 2 B. 7 C. 14 D. 25
The number of unemployed divided by the labor force equals
A. the labor force participation rate. B. the inflation rate. C. the misery index. D. the unemployment rate.
You are likely to think that the relative price of your good has risen and you should increase your output if you expected
A. the inflation rate to be 10% and the price of your good rose 13%. B. the inflation rate to be 10% and the price of your good rose 10%. C. the inflation rate to be 0% and the price of your good fell 10%. D. the inflation rate to be 10% and the price of your good rose 7%.