Perfect competition and monopolistic competition are similar in that both market structures include
A) price-taking behavior by firms.
B) a homogeneous product.
C) no barriers to entry.
D) very few firms.
C
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A country can gain by importing a good from abroad even if that good can be produced more efficiently at home. Is this statement true?
What will be an ideal response?
Negative externalities might be reduced by letting people "work it out themselves," which might also be described as ________
A) substantiation. B) negotiation C) remuneration D) adjudication E) appropriate taxation
The curve showing the short-run relationship between the ________ and the ________ is called the Phillips curve
A) unemployment rate; inflation rate B) exchange rate; real interest rate C) price level; real GDP D) nominal interest rate; real interest rate
According to classical macroeconomists, prices adjust ________ to shocks, so the government should ________
A) slowly; do little B) rapidly; do little C) rapidly; fight recessions D) slowly; fight recessions