Which of the following is a characteristic of a monopolistically competitive market?I. Each firm is a price-taker.II.Firms sell slightly differentiated products.III.Each firm faces a downward-sloping demand curve.
A. I only
B. I and II only
C. II and III only
D. I, II, and III
Answer: C
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When analyzing graphically the relationship between more than two variables, which of the following must be used?
A) the assumption that only relevant factors change B) positive slope assumption C) assumption of little change D) negative slope assumption E) ceteris paribus
Which of the following is an important assumption about the labor market that is shared by both the original Keynesian model and the Friedman "Fooling Model?"
A) The supply of labor depends on expected real wages. B) The demand for labor is a function of nominal wages. C) Workers can be "off" their labor supply function in the short-run equilibrium. D) Firms can be "off" their labor demand function in the short-run equilibrium.
The law of supply states that, holding other factors constant, as price increases
a. Quantity supplied increases b. Quantity supplied decreases c. Quantity demanded increases d. Quantity demanded decreases
Technological advances in recycling make it possible to produce a greater quantity of paper from a given quantity of recycled newspapers. Predict the likely impact on the supply curve for paper. a. There is a movement down along the supply curve. b. There is a movement up along the supply curve. c. The supply curve shifts to the left
d. The supply curve shifts to the right.