The market for wheat can be described at perfectly competitive while the market for pizza is better described as monopolistically competitive
Which of the following is a NOT a similarity between perfectly competitive and monopolistically competitive firms? A) Both monopolistically competitive and perfectly competitive firms produce at their efficient scale.
B) Both monopolistically competitive and perfectly competitive firms are free to enter and exit the market.
C) Both monopolistically competitive and perfectly competitive firms have a small market share.
D) There are a large number of firms in both monopolistically competitive and perfectly competitive markets.
A
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The interest rate at which the Federal Reserve Banks lend to commercial banks is called the ________.
A. discount rate B. short-term rate C. prime rate D. federal funds rate
An employer can't legally pay an employee less than $7.25 per hour, which is the federal minimum wage in 2018. Why does this lead to wage stickiness?
In the following equation, gdp refers to gross domestic product, and FDI refers to foreign direct investment. log(gdp) = 2.65 + 0.527log(bankcredit) + 0.222FDI (0.13) (0.022) (0.017) ? Which of the following statements is then true?
A. If FDI increases by 1%, gdp increases by approximately 22.2%, the amount of bank credit remaining constant. B. If FDI increases by 1%, gdp increases by approximately 26.5%, the amount of bank credit remaining constant. C. If FDI increases by 1%, gdp increases by approximately 24.8%, the amount of bank credit remaining constant. D. If FDI increases by 1%, gdp increases by approximately 52.7%, the amount of bank credit remaining constant.
When the values of coincident variables are declining, aggregate economic activity
A. will begin to decline within six months. B. might start to decline in the next year. C. is declining. D. has been declining for at least six months.