Monopolistic competitors and perfect competitors are alike in:
a. facing horizontal demand curves
b. earning zero economic profit in the short run.
c. earning zero economic profit in the long run.
d. relying on advertising to attract buyers to their products.
c
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In 2008, the nominal minimum wage rate was $7.25 an hour and the CPI was 200. The real minimum wage rate in 2008 was
A) $3.63 an hour. B) $14.50 an hour. C) $1450 an hour. D) $26.32 an hour. E) $7.25 an hour.
In the above figure, if the interest rate is 4 percent, people
A) sell bonds so as to convert them into money. B) buy bonds so as to have a better store of value. C) petition the Fed to tighten the quantity of money. D) buy stocks, because stocks are more liquid than currency.
Scarcity:
a. is a problem only in the poorer countries of the world. b. can be solved by rapid advances in technology. c. is a problem that exists in every economy. d. is not a problem for the very rich.
If real interest rates in the United States fell and real interest rates in England rose, we would expect people to: a. increase their demand for British pounds. b. borrow more from U.S. sources
c. buy relatively more British assets. d. all of the above