Advertising costs of a monopolistically competitive firm are ________
A) greater than a monopoly and the same as a perfectly competitive firm
B) greater than a perfectly competitive firm
C) less than a perfectly competitive firm
D) the same as a monopoly
B
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Refer to Table 4-4. What is the equilibrium hourly wage (W*) and the equilibrium quantity of labor (Q*)?
A) W* = $9.00; Q* = 370,000 B) W* = $9.00; Q* = 740,000 C) W* = $8.50; Q* = 380,000 D) W* = $8.50; Q* = 360,000
Why does bad money drive out good money? Because
a. money has high liquidity so that an excess supply of money creates unnecessary money, which comes to dominate the money market b. Say's Law means that money supply creates money demand and if too much money is created, it is bad because it can create inflation c. good money is in the form of bullion (specie, such as gold) which is preferred over nonbullion money d. people will not use bad money for exchange because it means exchanging it away so that bad money never serves the role of money e. people will not use good money for exchange because it means exchanging it away so that good money never serves the role of money
The difference between the new classical theory and the new Keynesian theory is the assumption of
A) rational expectations. B) adaptive expectations. C) complete flexibility of wages and prices in the short run. D) a and c E) b and c
All of the following are possible funding sources for the government EXCEPT
A) user charges. B) taxes. C) earnings from investing in company stock shares. D) borrowing.