What most likely causes the supply curve to shift from S1 to S2?
a. an increase in demand for a product
b. an increase in market price
c. an increase in firms entering the market
d. an increase in quantity sold
c. an increase in firms entering the market
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Which of the following is TRUE about monopolistic competition?
A) One firm serves as the entire industry. B) A small number of firms serve the entire market. C) It is competition among many firms producing similar but differentiated products. D) The pattern of production and trade is difficult to predict. E) It enjoys no economies of scale.
According to the New Classical theory, why may output differ from its full-employment level in the short run?
What will be an ideal response?
In the real business cycle model, business cycles are
a. efficient and do not represent lost output. b. driven by technology shocks. c. occur when markets clear. d. all of the above. e. None of the above
According to economic reasoning, you should offer one hour of volunteer service per week when Select one:
a. The total benefits of doing so are less than the total costs. b. The additional costs of doing so are great than the additional benefits. c. The additional costs of doing so are the same as the additional benefits. d. The additional benefits of doing so are greater than the additional costs.