In the model of monopolistic competition, compared to a firm with a lower marginal cost, a firm with a higher marginal cost will set a ________ price, produce ________ output, and earn ________ profits
A) higher; less; less
B) lower; more; more
C) higher; more; more
D) lower; less; less
E) higher; less; more
A
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If it is not possible to increase the output of one good without decreasing the output of the other, when there are only two goods, then
A. this situation would describe a point on a production possibilities frontier for the producer. B. the outcome can be described as efficient. C. there is no unemployment of resources. D. All of these outcomes are correct.
The utilitarian view of equity would lead to:
A) equal allocations of goods across all persons. B) maximizing the utility of the least-well-off person. C) maximizing the total utility of all society members. D) none of the above
The logic of the exchange-rate effect begins with a change in the price level changing the interest rate
a. True b. False Indicate whether the statement is true or false
An increase in aggregate demand is more likely to lead to demand-pull inflation if:
a) Aggregate supply is perfectly elastic b) Aggregate supply is perfectly inelastic c) Aggregate supply is unit elastic d) Aggregate supply is relatively elastic