In a monopolistically competitive market,
A. firms are small relative to the total market.
B. no firm has any market power.
C. there is easy entry and exit in the market.
D. a and b
E. a and c
Answer: E
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Refer to Table 11-3. Use the table above to calculate the annual growth rate in GDP. Also calculate the total percentage change in the growth from 2013 through 2016
Explain the difference between the average annual growth rate in real per capita GDP from 2013 through 2016 and the total percentage change in growth from 2013 and 2016.
In any economic system, scarce resources have to be allocated among competing uses. Market economies harness the forces of
a. government to allocate scarce resources. b. supply and demand to allocate scarce resources. c. credit cards to allocate scarce resources. d. nature to allocate scarce resources.
Suppose that Mexico has external debt, and the value of the country's currency, the peso, falls. Which of the following is true?
A) The peso value of the loans will decrease as well. B) Mexico will find it easier to pay off its external debt. C) Mexico will declare bankruptcy. D) The cost of debt service will be higher.
Which of the following will cause a movement along the supply curve for oil?
A) new technology to drill oil from existing oil wells B) an increase in the price of oil C) an increase in the number of oil producers D) government tax on oil producers in Texas