The products in a monopolistically competitive industry are:
A. heterogeneous.
B. competitive.
C. homogeneous.
D. uncompetitive.
Answer: A
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Suppose the price of coffee is $6 per pound. If this price is an absolute price, what is meant by the phrase "$6 per pound"? If this price is a relative price, what is meant by the phrase "$6 per pound"?
What will be an ideal response?
As a result of importing a good, domestic producers ________ the quantity produced and the price of the good ________
A) increase; falls B) increase; rises C) decrease; falls D) decrease; rises E) decrease; does not change
Which of the following statements regarding aggregate supply are CORRECT?
A) Moving along the long-run aggregate supply curve, both the price level and the money wage rate change by the same percentage. B) Moving along the short-run aggregate supply curve, both the price level and the money wage rate change by the same percentage. C) Moving along the long-run aggregate supply curve, the money wage rate changes but the price level is constant. D) Moving along the short-run aggregate supply curve, the money wage rate changes but the price level is constant.
Sharon wants a career as an accountant. During the summer she turns down a job painting houses at $6 an hour to work in an accounting office for $4 an hour. Which of the following would not explain her choice?
a. Accounting is more prestigious. b. The summer accounting job will help her get a full-time job in accounting when she graduates. c. She prefers to work inside. d. She would face the law of diminishing marginal utility if she had more goods. e. She dislikes the messiness of painting.