In comparison to perfect competition, monopolistic competition is characterized by
a. efficient scale.
b. pricing at marginal cost.
c. excess capacity.
d. All of the above are correct.
c
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Suppose that the government increases a tax paid by employers for hiring workers (for example, Social Security). What are the likely effects on real wages, output and employment? What are the likely magnitudes of these effects?
What will be an ideal response?
The endowment effect is the tendency of people to be unwilling to sell a good they already own even if they are offered a price greater than they would be willing to pay to buy the good if they did not already own it
Indicate whether the statement is true or false
Within a country, the domestic price of a product will equal the world price if
a. trade restrictions are imposed on the product. b. the country allows free trade. c. the country chooses to import, but not export, the product. d. the country chooses to export, but not import, the product.
Which of the following will occur when an economy's price level increases?
A. The purchasing power of money will increase. B. The purchasing power of money will decrease. C. The real value of wealth will increase. D. Aggregate demand will increase.