Monopolistically competitive markets may be socially inefficient because
a. most firms produce inferior products.
b. government programs cannot effectively regulate price.
c. firms earn zero economic profit.
d. the market may have too much or too little entry by new firms.
d
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Refer to the scenario above. Rebecca should place a bid of ________
A) $40,500 B) $45,000 C) $50,000 D) $55,000
Suppose the reserve requirement is 10 percent and a person deposits $1,500 in a local bank. The local bank can now create a maximum of:
a. $150 in additional money, by lending $150. b. $15,000 in additional money, by lending $15,000. c. $1,500 in additional money, by lending $1,500. d. $1,350 in additional money, by lending $1,350. e. $135 in additional money, by lending $135.
If the total government expenditure in a country during a particular year amounts to $4.9 million and its total tax collection in the same year is $5.9 million, then:
a. there is a budget deficit of $4 million. b. there is a budget surplus of $10 million. c. there is a budget deficit of $1 million. d. there is a budget surplus of $1 million.
If we are going to get the most value from our resources, entrepreneurs should choose the investment alternatives that
A) reduce the value of resources and retard wealth accumulation. B) result in the production of the largest possible output regardless of value to consumers. C) are most heavily subsidized by the government. D) yield a profitable rate of return.