Monopolistic competition is characterized by firms:
A. Producing differentiated products
B. Making economic profits in the long run
C. Producing at optimal productive efficiency
D. Producing where price equals marginal cost
A. Producing differentiated products
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A country should export only those goods for which, relative to its trading partners, it has the
a. absolute advantage b. highest opportunity cost c. lowest production possibilities d. strongest demand e. lowest opportunity cost
Christina Romer argued that
A. measured properly, economic expansions after 1929 were shorter than the official statistics showed. B. measured properly, GNP before 1929 varied substantially less over time than the official statistics showed. C. measured properly, GNP after 1929 varied substantially more over time than the official statistics showed. D. measured properly, economic expansions before 1929 were shorter than the official statistics showed.
Compared to a purely competitive firm, a monopsonist will pay:
A. A higher wage rate to its workers B. Lower wages but hire more workers than the purely competitive firm C. Lower wage rates and hire fewer workers than the purely competitive firm D. Lower wages while hiring the same quantity of workers as the purely competitive firm
Which of the following statements is NOT an assumption underlying the production possibilities curve?
A) Resources are fully and efficiently employed. B) Technology is fixed. C) Production occurs over some specified time period. D) The amount of resources available for production can be changed quickly.