A monopolistically competitive firm:
A. sometimes distinguishes its output from that of its competitors by locating in a more convenient place.
B. sells products that are perfect substitutes for its competitors' products, so must compete on the basis of location.
C. sells products that are close substitutes for its competitors' products, so will locate as far away from its competitors as possible.
D. will be more successful the more similar its output is to its competitors' output.
Answer: A
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In the 1950s, a traditional, thirty-year fixed-rate mortgage would typically have been
A. available to the borrower without a down payment and without documentation of income. B. securitized and sold to a consortium of foreign investors. C. held by the original lender or banker until it was paid off. D. all of the options are correct.
A major advantage of monetary policy over fiscal policy is that monetary
A. policy affects all sectors of the economy equally. B. policy can be put into effect more quickly. C. policy, once implemented, takes effect more quickly. D. authorities see the need for policy more quickly.
Stock market price quotations best exemplify money serving as a:
A. index of satisfaction. B. store of value. C. unit of account. D. medium of exchange.
Comparative advantage is illustrated by the slopes of production possibilities frontiers.
Answer the following statement true (T) or false (F)