What are some examples of the four different market structures?
What will be an ideal response?
Examples of pure competition can be found in the market for agricultural products and in financial markets. Retail stores and restaurants provide examples of monopolistic competition. Standardized oligopolies would be found in the production of aluminum, steel, copper, and other metal products. Differentiated oligopolies would be found producing automobiles and large household appliances such as refrigerators. Pure monopoly would be exemplified by local utilities such as electric, gas, or phone companies.
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An important function of the regional Federal Reserve Banks is
A) setting reserve requirements. B) clearing checks. C) determining monetary policy. D) setting margin requirements.
If long-run economic growth is NOT accompanied by a change in aggregate demand, the result will be
A. appreciation of the dollar. B. persistent inflation. C. devaluation of the dollar. D. secular deflation.
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4According to Figure 2.4, as the economy moves from Point D to Point B, the opportunity cost of hybrid cars, measured in terms of motorcycles,
A. initially increases, then decreases. B. increases. C. remains constant. D. decreases.
Suppose the economy is experiencing inflation. What would be the interpretation of how a restrictive monetary policy would address this problem?
What will be an ideal response?