What is the difference between a nominal value and a real value?
A. A nominal value is measured in monetary units while a real value is measured in current dollars.
B. A nominal value is measured in market rates while a real value is measured in terms of exchange rates.
C. A nominal value is measured in units of constant purchasing power while a real value is measured in units of current purchasing power.
D. A nominal value is measured in current market prices while a real value is measured in base year prices.
Ans: D. A nominal value is measured in current market prices while a real value is measured in base year prices.
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In the model of monopolistic competition, trade costs between countries will cause domestic and foreign markets to have ________ prices, ________ quantities sold, and ________ profit levels
A) different; different; different B) identical; different; different C) different; different; identical D) identical; different; identical E) identical; identical; different
Assume that oranges and peaches can both be grown on the same type of land, a decrease in the price of peaches, other things being equal, will cause a(n):
a. upward movement along the supply curve for oranges. b. downward movement along the supply curve for oranges. c. rightward shift of the supply curve for oranges. d. leftward shift of the supply curve for oranges.
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a. advertising is more effective for industrial products than consumer products. b. the content of advertising may be irrelevant to product success in the market. c. regulations limiting advertising benefit consumers, but not producers. d. television advertising is more effective in reducing competition than ads on websites.