In the long run, firms in monopolistic competition earn zero economic profit because
A) firms are free to enter and exit.
B) their products are similar but slightly different.
C) of over-reliance on product marketing.
D) of collusion among the various sellers.
E) their demand curves are horizontal.
A
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Which of the following is not a component of the federal government's fiscal policy?
A. Debt financing B. Key interest rates C. Spending D. Taxation
Exhibit 17-1 Nation of Padia
Exhibit 17-1 shows the production possibility curve of the nation of Padia. Based only on this information, the point which would produce the highest rate of growth would be:
A. I B. II C. III D. IV
A rise in the price level has a direct effect on spending because
A. the real value of the money people have decreases and they can buy less with it. B. the real value of the money people have varies directly with the price level. C. a higher price gives people more money, and so the more goods and services they can buy. D. people like to spend more when prices are higher.
In the sequential version of a game using the same players, the same strategies, and the same possible outcomes as the original game, the equilibrium
A) may be different than in the original game. B) must be different than in the original game. C) will be the same as in the original game. D) is the same as the cooperative version of the original game. E) is the same as the noncooperative version of the original game.