For the monopolistically competitive firm, the demand curve it faces will be flatter:
A. the more differentiated the good is.
B. the less differentiated the good is.
C. the more complementary the good is.
D. the less complementary the good is.
B. the less differentiated the good is.
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The curvature of an economy's production possibilities curve represents:
A) an increasing marginal cost of producing both goods. B) an increasing opportunity cost of producing each good. C) diminishing marginal returns to inputs. D) increasing terms of trade between both goods.
Refer to Figure 12-15. Suppose a typical firm in a perfectly competitive market is earning economic profits in the short run. Which of the diagrams in the figure depicts what happens in the industry as it transitions to a long-run equilibrium?
A) Panel A B) Panel B C) Panel C D) Panel D
The type of unemployment that occurs because of a recession is called
a. frictional unemployment. b. seasonal unemployment. c. natural unemployment. d. cyclical unemployment.
Which of the following offers an explanation for the Leontief paradox?
I. Leontief's assumption that U.S. and foreign technologies are the same is incorrect. II. Leontief did not incorporate land and other resources. III. Leontief did not distinguish between skilled and unskilled labor. a. I, II, and III b. I and II c. I and III d. I