Which of the following is not a characteristic of a monopolistically competitive market structure?
A) All sellers sell products that are differentiated.
B) There is a large number of independently acting small sellers.
C) Each firm must react to actions of other firms.
D) There are low barriers to entry of new firms.
C
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If the annual real interest rate on a 10-year inflation-protected bond equals 1.5 percent and the annual nominal rate of return on a 10-year bond without inflation protection is 4.2 percent, what average rate of inflation over the ten years would make holders of inflation-protected bonds and holders of bonds without inflation protection equally well off?
A. 4.2 percent B. 2.7 percent C. 1.5 percent D. 5.7 percent
In goods market equilibrium in an open economy,
A. the desired amount of national saving must equal the desired amount of domestic investment plus the amount lent abroad. B. the desired amount of exports must equal the desired amount of imports. C. the desired amount of exports must equal the desired amount of imports less the amount lent abroad. D. the desired amount of national saving must equal the desired amount of domestic investment.
Most economists
A. favor both tariffs and quotas. B. consider tariffs less of an evil than quotas. C. consider quotas and tariffs of equal evil.
If a country has a comparative advantage in producing a product, it must also have an absolute advantage in producing that product
Indicate whether the statement is true or false