Average cost is higher with a monopolistically competitive firm than with a perfectly competitive firm.
Answer the following statement true (T) or false (F)
True
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If you hear that unemployment increased by 2 percentage points to 4 %in the past year, while the labor force participation rate and the population remained constant, it means:
A. unemployment doubled in the past year. B. there was a 100 percent increase in unemployment. C. twice as many people are without work than was the case a year ago. D. All of these are true.
A citizen in a developing country with a currency policy of convertibility on the current account could engage in all of the following transactions except:
A. sell foreign currency resulting from the exports of manufactured t-shirts. B. sell foreign currency resulting from the sale of a U.S. treasury bond. C. purchase foreign currency in order to import a BMW. D. purchase foreign currency in order to purchase a U.S. treasury bond.
The price-misperceptions model differs from the equilibrium business cycle model in that households
a. no longer serve as providers of capital services. b. find that market-clearing prices move to equilibrium slowly. c. sometimes misinterpret changes in nominal prices as changes in real prices. d. typically face disequilibrium because prices fail to clear markets.
In oligopoly, the actions of one firm have a perceptible effect on the other firms.
Answer the following statement true (T) or false (F)