In a monopolistically competitive market, if price is greater than average cost:
A. firms will enter.
B. firms will exit.
C. there will be no change in the number of firms.
D. the market is in long-run equilibrium.
Answer: A
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Refer to Figure 27-1. Suppose the economy is in a recession and expansionary fiscal policy is pursued. Using the static AD-AS model in the figure above, this would be depicted as a movement from
A) C to B. B) A to B. C) A to E. D) B to C. E) B to A.
Which of the following is true about foreign aid provided by the United States?
a. During the last four decades, the U.S. has provided less than $400 million in aid b. Most U.S. aid has been coordinated by the Department of Defense c. The U.S. Agency for International Development emphasizes short-range plans d. The U.S. Agency for International Development concentrates primarily on health, education, and agriculture e. Foreign aid is large part of the U.S. federal budget
In the graph shown above, if the government set a price ceiling of $18
A. the price would rise to the equilibrium price.
B. the price would fall to equilibrium price.
C. there would be a temporary shortage, then price would rise to equilibrium price.
D. there would be a permanent shortage, at least until the price ceiling was lifted.
Which could be sources of funding for a government that wants to increase government expenditures?
A. both taxes and borrowing B. borrowing only C. neither taxes nor borrowing D. taxes only