A major characteristic of monopolistic competition is that prices will be _____.
(A) Unrelated to the type of competition.
(B) Higher than in a true monopoly.
(C) Higher than in perfect competition.
(D) Lower than in perfect competition.
Ans: (C) Higher than in perfect competition.
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A change in nominal GDP sums up changes in
A) prices alone. B) physical production alone. C) physical production and hours of production time. D) physical production and prices.
Maryanne expects to work for another 30 years and expects to live another 10 years after she retires
If Maryanne completely smooths consumption over her lifetime, for every $1,000 increase in disposable income, she will use ________ for consumption each year. A) $100 B) $333 C) $667 D) $750
If the government decreases the income tax rate, they assume it will affect which component of GDP?
A. C B. NX C. G D. A change to the income tax rate will not affect any of these components.
Which of the following would lead to an increase in the supply of Russian rubles?
a. An increase in the dollar price of the ruble b. An increase in Russian GDP c. An increase in the U.S. price level relative to the Russian price level d. A decrease in the dollar-ruble exchange rate e. Expectation that the price of the ruble will rise.