What are the advantages and disadvantages of resource allocation under monopolistic competition compared to perfect competition?
The disadvantage is that monopolistically competitive firms do not operate at minimum long-run average cost, whereas competitive firms do. The advantage is that "variety is the spice of life" and there is variety in monopolistic competition but not in perfect competition, where all producers make an identical product.
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A labor force survey in Brownland records the following data:
Employed: 189,000 Unemployed: 15,000 Not in the labor force: 84,000 a) Calculate the unemployment rate. b) Calculate the labor force participation rate.
Suppose a nation has a total population of 50,000,000. Out of that, 50% are in the labor force and 23,000,000 people are employed. What is the nation's unemployment rate?
A) 4.0% B) 8.0% C) 12% D) 14%
The government is pursuing an expansionary policy if it:
a. decreases its spending and increases its tax revenues. b. increases its spending or increases its tax revenues. c. decreases its spending or reduces its tax revenues. d. increases its spending and/or reduces its tax revenues.
Ace has always been a top student, so it was no surprise he won a $1,500 scholarship from the company where he worked summers to help with college expenses. Ace decides to spend his scholarship money on a new Apple MacBook. How will GDP be affected by Ace's recent purchases?
A. Consumption will go up by $1,500, because a computer is a nondurable good. B. Consumption will go up by $1,500, because a computer is a durable good. C. Investment will go up by $1,500, because a computer is a durable good. D. GDP will not be affected, since Ace acquired the computer with scholarship money.