Which of the following is true under monopolistic competition in the short run?
A. P > MC.
B. Profits are always zero.
C. P = MR.
D. All of the choices are true in monopolistic competition.
Answer: A
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In the above figure, if the price of milk rises, the budget line
A) rotates outward and the slope becomes steeper. B) shifts inward and its slope does not change. C) rotates inward and the slope becomes steeper. D) rotates inward and the slope becomes more shallow.
The U.N.'s Millennium Poverty Goal was to reduce the global rate of extreme poverty to 15 percent by 2015, but it will not have much impact on the number of people in poverty.
Answer the following statement true (T) or false (F)
Refer to the above table. If the price of Good A is $1, the price of Good B is $2, and the consumer has $13, the rational consumer will purchase
A. 1 units of Good A and 1 units of Good B. B. 6 units of Good A and 0 units of Good B. C. 3 units of Good A and 4 units of Good B. D. 5 units of Good A and 4 units of Good B.
Refer to the figure below.________ inflation will eventually move the economy pictured in the diagram from short-run equilibrium at point ________ to long-run equilibrium at point ________, 
A. Rising; B; C B. Falling; A; C C. Falling; A; B D. Rising; A; C