Entry and exit drive each firm in a monopolistically competitive market to a point of tangency between its
a. marginal revenue curve and its total cost curve.
b. marginal revenue curve and its average total cost curve.
c. demand curve and its total cost curve.
d. demand curve and its average total cost curve.
d
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The "lemons problem" exists in the market for goods because
A) sellers tend to try to take advantage of buyers. B) buyers tend to try to take advantage of sellers. C) differences in the quality of the goods being exchanged. D) of moral hazard.
Governments generally take responsibility for
A. determining the moral code. B. making sure the economy remains healthy. C. deciding what is produced by most businesses. D. the purchasing decisions of households.
If the marginal propensity to save (MPS) is 0.1, the spending multiplier will be
A. 1.1. B. 10. C. 0.9. D. 0.1.
As the variable on the Y-axis rises the variable on the X-axis falls. The relationship between X and Y is said to be positive.
Answer the following statement true (T) or false (F)