Which of the following is the result of competing through advertising for a monopolistically competitive firm?
a. Long-run average costs shift downward.
b. The firm's demand curve become flatter and shifts inward.
c. The firm's demand curve keeps the same slope and shifts inward.
d. Long-run average costs shift upward.
d
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Your new neighbor does not mow his lawn or prune the trees in his front yard. As a result, your house value decreases. Your neighbor generated
A) a negative externality. B) a positive externality. C) no externality. D) a non-rival good.
The payoff matrix below shows the daily profit for two firms, Row Restaurant and Column Cafe, for two different strategies, publishing coupons in the student paper and not publishing coupons in the student paper. 
If Row Restaurant publishes coupons, Column Cafe would earn the highest profit if it:
A. also published coupons. B. did not publish coupons. C. chooses either strategy because Column Cafe will have the same profit in either case. D. only offered coupons half of the time.
Peruvian economist Hernando de Soto claims the ________ in Latin America results in "dead capital."
A. strong titling system B. generally weak currencies C. general lack of strong national defense D. weak titling system
In considering the relationships between price and quantity demanded, ceteris paribus directs the economist to assume that:
A. price increases affect quantity. B. quantity increases affect prices. C. neither price nor quantity affect demand. D. all other variables remain unchanged.