A monopolistically competitive firm faces a relatively-elastic demand curve as compared to a monopolist firm because of the:
a. presence of a large number of buyers and barriers to entry.
b. presence of a large number of firms and easy entry into the market.
c. production of perfectly homogeneous products.
d. production of unique products and the presence of barriers to entry.
e. production of goods that are perfect complements of each other.
b
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It is widely believed that the Federal Reserve's most important function is
A) to provide loans to the federal government. B) to regulate the money supply. C) to set the legal, controlled consumer interest rates. D) to lend to risky customers.
The largest labor union in the United States is the
A) National Education Association. B) International Brotherhood of Teamsters. C) United Food and Commercial Workers International Union. D) Service Employees International Union.
Imagine you own a machine that produces perfectly authentic and legal $100 bills. You would use this machine until:
a. the bills became worthless. b. the total cost began to fall. c. the marginal cost was $100. d. the variable cost began to rise. e. the marginal revenue began to fall.
Use the following diagrams for the U.S. economy to answer the next question.
Assuming the economy is initially at full employment, which of the diagrams best portrays a recession?
A. Graphs (1) and (2) B. Graphs (1) and (3) C. Graphs (2) and (4) D. Graphs (3) and (4)