Monopolistically competitive firms can differentiate their products
A) by producing where marginal revenue equals marginal cost.
B) through marketing.
C) by equating price and average total cost.
D) by producing at minimum efficient scale.
B
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Monica recently lost her job as a teller at the bank. The bank explained that they were replacing Monica and others with ATM machines. Monica falls into a category of unemployment known as
A. cyclical unemployment. B. frictional unemployment. C. structural unemployment. D. seasonal unemployment.
The transactions demand for money
A. is determined by the Federal Reserve System. B. is a function of nominal Gross Domestic Product (GDP). C. varies directly with the rate of interest. D. varies inversely with the precautionary demand for money.
In the simple deposit expansion model, if the banking system has excess reserves of $75, and the required reserve ratio is 20%, the potential expansion of checkable deposits is
A) $75. B) $750. C) $37.50. D) $375.
The individual firm operating in a perfectly competitive labor market
A) can hire more labor only by offering a higher wage. B) faces an inelastic demand for labor. C) will pay less to the additional labor employed. D) can buy all the labor it wants at the going market wage rate.