At a long-run equilibrium in monopolistic competition, price equals
A) average total cost.
B) marginal cost but not marginal revenue.
C) marginal revenue but not marginal cost.
D) zero.
E) marginal revenue and marginal cost.
A
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Interest rates increased continuously during the 1970s. The most likely explanation is
A) banking failures that reduced the money supply. B) a rise in the level of income. C) the repeated bouts of recession and expansion. D) increasing expected rates of inflation.
When Fred's income was $100 per week, 10 units of good X were demanded. Now his income is $150 per week and 12 units of good X are demanded. Using the percentage change formula, the income elasticity of demand for good X equals
A) 0.45. B) 0.40. C) 2.20. D) 2.50.
According to the text, Japan lost much of its capital stock during World War II. It subsequently found that its
a. production possibilities curve had shifted to the left because it was unable to regain,even until today, its prewar output levels, having lost so much of its capital resources(Hiroshima and Nagasaki still haven't recovered from the 1945 atomic bomb attacks) b. production possibilities curve, having shifted to the left, quickly recovered with the use of the most up-to-date technology c. economy's productivity suffered irreversibly because the enormous loss of life created a loss of skilled, scientific, and technological knowledge d. research efforts were hampered because victor countries refused to share scientific knowledge with it in retaliation for the war e. production possibilities curve remained unchanged for two decades after the warbecause international trade was reduced
Most studies have found that tobacco and marijuana are substitutes rather than complements
a. True b. False Indicate whether the statement is true or false