If the market for products produced by firms in a monopolistically competitive industry becomes ________, then there will be ________ firms and each firm will produce ________ output and charge a ________ price
A) smaller; fewer; less; higher
B) smaller; more; less; higher
C) smaller; more; less; lower
D) smaller; fewer; less; lower
E) smaller; fewer; more; higher
A
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What do economists mean by an efficient tax?
What will be an ideal response?
The East Asian model's approach to interest rates has been
a. to keep interest rates well below market levels b. to keep interest rates above market levels c. to allow the market to determine interest rates d. to allocate investment funds entirely through government, and not charge any interest e. none of the above
Which of the following is true?
a. The actual result of changing behavior following the rule of rational choice will always make people better off. b. The actual result of changing behavior following the rule of rational choice will never make people better off. c. In terms of the rule of rational choice, zero levels of pollution would be far too costly in terms of what we would have to give up to achieve them. d. The rule of rational choice implies that it is impossible to be too safe.
Which of the following will most likely result from an unexpected increase in prices that decreases real wages and resource prices?
a. a decrease in unemployment b. an increase in unemployment c. a decrease in the nominal interest rate d. a decrease in aggregate supply and real output