Consumers benefit from monopolistically competitive markets because:
A. they only have one good from which to choose.
B. in this type of market, producers supply goods in a variety of locations or with a variety of characteristics.
C. in this type of market, goods are sold at a price equal to the marginal cost of production.
D. goods are sold at a price equal to marginal revenue.
Answer: B
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Campbell loves to work. He does not receive any enjoyment from leisure time. The last dollar that he earns each year means just as much to him as the first dollar. Which of the following best describes the shape of Campbell's labor supply curve?
A. Downward-sloping to the right. B. Vertical. C. Horizontal. D. Upward-sloping to the right.
Suppose current sales increase by $100 million. Investment theory suggests that current investment must
A) decrease exactly by $100 million. B) increase by exactly $100 million. C) increase by less than $100 million. D) decrease, but by less than $100 million. E) none of the above
Overvalued exchange rates benefit consumers in the short run
Indicate whether the statement is true or false
A surplus or shortage in the money market is eliminated by adjustments in the price level according to
a. both liquidity preference theory and classical theory. b. neither liquidity preference theory nor classical theory. c. liquidity preference theory, but not classical theory. d. classical theory, but not liquidity preference theory.