Some people like blue jeans that fit tightly, and some prefer blue jeans with some give. These preferences for small differences in the same kind of product create opportunities for _______________ among the companies that produce them.
a. monopolies
b. monopolistic competition
c. perfect competition
d. price fixing
b. monopolistic competition
The concept of differentiated products is closely related to the degree of variety that is available. The variety of styles, flavors, locations, and characteristics creates product differentiation and monopolistic competition.
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Keynesians argue that the crowding-out-effect is rather insignificant. True or False
The table above has information about the CPI, nominal wage rate, and nominal interest rate for the country of Syldavia for the years 2010 to 2012. The reference base year is 2011. The inflation rate in Syldavia from 2011 to 2012 was
A) 8.4 percent. B) 8.0 percent. C) 4.0 percent. D) 3.0 percent. E) 10.3 percent.
Suppose that the demand for electricity has been found to be price inelastic. The most likely explanation for this finding is that:
A. electricity is a luxury good. B. electricity is sold in a monopoly market. C. the fraction of income spent on electricity is large. D. few substitutes for electricity exist.
The money supply increased and the AD curve did not shift to the right. This is consistent with the
A) Keynesian transmission mechanism when there is either a liquidity trap or interest-insensitive investment. B) monetarist transmission mechanism when there is interest-insensitive investment. C) Keynesian transmission mechanism when there is a liquidity trap. D) monetarist transmission mechanism when there is a liquidity trap. E) c and d