A monopolistically competitive firm is like a perfectly competitive firm insofar as both
A) have negatively sloping demand curves.
B) can make zero economic profit in the long run.
C) have horizontal MR curves.
D) are protected by high barriers to entry.
B
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Which of the following is an example of government discretionary spending?
A) defense spending B) net interest paid on government debt held by the public C) Social Security retirement payments D) Medicare benefits for the elderly
A given change in business investment will cause a larger change in equilibrium output.” This statement describes an important Keynesian concept called the
a. multiplier effect. b. marginal propensity to consume. c. marginal propensity to invest. d. consumption function.
If the government wanted a tax to reduce the quantity exchanged a large amount but not raise much in tax revenue, it would want to tax an industry with
a. elastic supply and demand curves. b. inelastic supply and demand curves. c. inelastic supply and elastic demand. d. elastic supply and inelastic demand.
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4According to Figure 2.4, as the economy moves from Point D to Point B, the opportunity cost of hybrid cars, measured in terms of motorcycles,
A. initially increases, then decreases. B. increases. C. remains constant. D. decreases.