A monopolistically competitive firm:
A. sells products that are perfect substitutes for its competitors' products, so must compete on the basis of location.
B. will be more successful the more similar its output is to its competitors' output.
C. sometimes distinguishes its output from that of its competitors by locating in a more convenient place.
D. sells products that are close substitutes for its competitors' products, so will locate as far away from its competitors as possible.
Answer: C
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A) total B) gross C) marginal D) explicit
Which of the following statements about modern macroeconomic theory is most accurate?
a. Keynes' ideas help us understand movements in output around its long-run trend, while the Classical model is more useful in explaining the long-run trend itself. b. The classical model helps us understand movements in output around its long-run trend, while the short-run macro model is more useful in explaining the long-run trend itself. c. Both classical and short-run macro models help us understand movements in output around its long-run trend, but neither model is effective at explaining the long-run trend itself. d. Neither the classical nor the short-run macro model helps us understand movements in output around its long-run trend, but both are useful in explaining the long-run trend itself. e. Only the short-run macro model is useful in understanding movements in output around its long-run trend, and in explaining the long-run trend itself.
ADRs that are created at the request of a foreign firm wanting its shares traded in the United States are ________.
A) facilitated B) unfacilitated C) sponsored D) unsponsored
When the Fed buys a Treasury bill from the public, how does it usually pay for the T-bill?
A. By writing a check on a commercial bank account B. By printing new Federal Reserve notes C. By creating new reserves in bank accounts D. By prepaying taxes into the Treasury’s account