Which of the following is true about advertising?
a. If monopolistically competitive firms compete through advertising, that creates brand loyalty, then advertising can be an effective entry cost.
b. Advertising may be the only way that a new entrant can penetrate a market dominated by long-established firms.
c. Advertising has no impact on entry costs or market structure.
d. Both a. and b. above are correct.
d
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When an economy experiences a recession there is
A) a rightward shift of the short-run Phillips curve. B) a leftward shift of the short-run Phillips curve. C) no change in the short-run Phillips curve. D) a downward movement along the short-run Phillips curve. E) an upward movement along the short-run Phillips curve.
The total civilian labor force is comprised of
A) the unemployed and the employed. B) only the employed. C) all individuals over 16 years of age, whether or not they work or are seeking work. D) only full-time employed individuals between the ages of 18 and 55.
Time series variables fail to be stationary when
A) the economy experiences severe fluctuations. B) the population regression has breaks. C) there is strong seasonal variation in the data. D) there are no trends.
If two firms have different abatement costs, in a system of marketable pollution permits:
A. the firm with lower abatement costs will sell permits to the firm with higher abatement costs. B. the firm with lower abatement costs will purchase permits from the firm with higher abatement costs. C. no voluntary exchange that makes both firms better off is possible. D. voluntary exchange will occur, but it is impossible to determine which firm will be the seller and which will be the purchaser.