You increase the advertising intensity for your product in market A but not in market B. Sales in A rise from 1140 to 1180 units per week while sales in B fall from 1270 to 1230 . The Difference-in-difference estimate of the effect of the increased advertising is:
a. 0 units
b. 80 units
c. 100 units
d. 120 units
b
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According to the production possibilities model, if more resources are allocated to the production of physical and human capital, then which of the following is likely to happen?
A) The country's total production will fall. B) The production possibilities frontier will shift inward in the future. C) Fewer goods will be produced for consumption today. D) Future economic growth will decline.
Monopolistic competition is similar to
a. perfect competition, in that firms face downward-sloping demand curves and earn zero long-run economic profit b. pure monopoly, in that firms face downward-sloping demand curves and can earn economic profits both in the short run and in the long run c. perfect competition, in that firms face perfectly elastic demand curves and earn zero long-run economic profit d. pure monopoly, in that firms can earn economic profits both in the short run and in the long run, and similar to perfect competition, in that firms face perfectly elastic demand curves e. pure monopoly, in that firms face downward-sloping demand curves, and similar to perfect competition, in that long-run economic profit is zero
An example of a good that is nonexcludable is:
A. an art exhibition with an admission fee. B. a piece of Velcro. C. space exploration. D. a bottle of Tang.
Seemingly positive disagreements often have normative origins
a. True b. False