Which market structure is characterized by many sellers, easy entry, and homogeneous products
a. perfect competition
b. monopolistic competition
c. oligopoly
d. monopoly
a
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According to this Application, real GDP only grew by ________ percent from the end of the recession in 2009 through 2014
A) 2.0 B) 5.4 C) 10.8 D) 15.0
One way of reducing our trade deficit would be to get Americans to
A. save more and consume more. B. save more and consume less. C. save less and consume less. D. save less and consume more.
In Figure 15.3, the Fed can decrease the equilibrium interest rate from 6 percent to 2 percent by
A. Decreasing the money supply. B. Selling bonds. C. Decreasing the reserve requirement. D. Increasing the discount rate.
Sarah makes giant wind chime sculptures for a living. When she makes 4 sculptures, she earns $10,000. When the makes 5 sculptures, she earns $12,500. Next door, Gilbert runs a meditation clinic
When Sarah makes 4 giant wind chime sculptures, the noise from the sculptures does not disrupt his patients, and he earns $7,500. When Sarah makes 5 sculptures, the noise is disruptive and Gilbert's profits fall to $6,000. The city has an ordinance which prohibits noise that disrupts the community. a. If you were the benevolent social planner, would you like to see Sarah make 4 sculptures or 5? Why? b. If bargaining between Sarah and Gilbert is easy, how many sculptures will Sarah make? Describe the bargain that results, if any, including the amount of money that changes hands. c. Is the outcome in part b an outcome that the benevolent social planner would endorse? Why or why not?