In the analysis of the interest rate effect, when the price level changes, the quantity of money households and firms' want to hold changes in the ______ direction as interest rates, while investment changes in the _____ as the quantity RGDP demanded
a. Same, same
b. Same, opposite
c. Opposite, same
d. opposite, opposite
a
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In a situation of mutual interdependence and identical products, managers of oligopolistic firms ________ attempt to differentiate their product to earn ________ economic profit.
A) should; positive B) should not; positive C) should; negative D) should; zero
Which of the following types of goods is subject to the free-rider problem?
A) a private good B) a public good C) a product that creates a positive externality D) a product that creates a negative externality
Monopolistically competitive firms do not differentiate their products by:
A. selling products at different locations. B. selling a product with different levels of services accompanying the product. C. convincing consumers that the product is identical to those sold by competitors. D. using advertising to create a special aura or image for the product.
To conduct a partial equilibrium analysis of a change in consumer preferences toward coffee and away from tea, you must consider
A. changes in the amount of resources allocated to the production of coffee. B. changes in the price of resources allocated to the production of coffee. C. changes in the equilibrium price and quantity of coffee. D. all of the above