A monopolistically competitive firm chooses
A) both the quantity of output to produce and the price at which it will sell its output.
B) the price of the product it sells but market forces determine the quantity it will be able to sell.
C) the quantity of output to produce but the price of the product it sells is determined collectively by all firms in the industry.
D) the price of the product it sells but the quantity of output to produce is agreed upon by all firms in the industry.
Answer: B
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The solvency of Social Security can be extended if
A. the tax rate is reduced. B. the trust fund invests in government bonds. C. the retirement age is reduced. D. the cap on taxable earnings is raised.
Which of the following is a feature of an oligopoly market?
A) There is a large number of sellers in this market. B) There are no barriers to entry in this market. C) Each firm in this market earns zero economic profits. D) Each firm's action affects the decisions of its rival.
One result of asymmetric information in the market for bank loans is that
a. few loans are offered b. few bad loans are made c. more bad loans than good loans may be made d. lenders benefit at the expense of borrowers e. the interest on good loans will be higher than otherwise
Suppose the European Union has a Nominal GDP of 20 trillion Euros, and their GDP deflator is 125. What is the European Union’s Real GDP?
A. 25 trillion Euros B. 16 trillion Euros C. 0.16 trillion Euros