The "monopoly" in monopolistically competitive markets is most likely a result of firms having some pricing power due to product differentiation
a. True
b. False
Indicate whether the statement is true or false
True
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Portfolio investment can generally travel across borders quickly because it usually involves:
A. transfers between two bank accounts. B. the shipment of equipment from one place to another. C. the hiring or firing of foreign workers. D. two governments agreeing on trade.
A utilitarian government has to balance the gains from greater income equality against the losses from distorted work incentives. To maximize total utility, therefore, the government
a. would never tax labor income. b. must always achieve a fully egalitarian society. c. enacts policies that only benefit the middle class. d. stops short of a fully egalitarian society.
When people believe that an economic fluctuation is both permanent and caused by supply-side events, the result is ______.
a. a positive relationship between the unemployment and inflation rates b. a negative relationship between the unemployment and inflation rates c. high unemployment rates and low inflation rates d. low unemployment rates and high inflation rates
Which of the following is true for perfect competition but not true for monopolistic competition and monopoly?
A. P = MC and positive long run profits B. Positive long run profits C. P = MC D. MC = MR