The model of perfect competition and the model of monopolistic competition differ in that
A. perfect competition assumes firms make zero profits in the long run and monopolistic competition assumes firms make positive profits.
B. perfect competition assumes many buyers and sellers while monopolistic competition assumes many buyers but few sellers.
C. perfect competition assumes the product is homogeneous and monopolistic competition assumes the product is differentiated.
D. perfect competition assumes easy entry of new firms while there are more significant barriers to entry in monopolistic competition.
Answer: C
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Frictional unemployment is:
A. short-term unemployment that is associated with the process of matching workers with jobs. B. the extra unemployment that occurs during periods of recession. C. the additional unemployment not captured in official statistics resulting from discouraged workers and involuntary part-time workers. D. the unemployment that results when people retire or leave the labor force.
Economic conflict(s) leading to the Civil War ___________________________.
A. were over tariffs and the extension of slavery into the new territories B. was the growing free trade with England C. was Abraham Lincoln freeing the slaves D. None of the choices are true
If the nominal interest rate is 8 percent and inflation is 3 percent, approximately what is the real interest rate?
A) 11 percent B) 8 percent C) 5 percent D) 3 percent
Her marginal utility of her fifth scented candle would be
Table: Demand and Utility Schedules for packs of scented candles
A. $4.
B. $5.
C. $20.
D. $26.