The excess capacity theorem states that
a. society is worse off with fewer monopolistic competitors.
b. costs of production under monopolistic competition can be lowered by reducing the number of producers.
c. lack of excess capacity leads to shortages during periods of unexpected growth in demand for goods produced by monopolistic competition.
d. there is too much choice in our economy.
b
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Federal Reserve policy tools include all of the following EXCEPT
A) desired reserve ratios. B) required reserve ratios. C) the discount rate. D) open market operations.
Based on Table 4.1, according to the Heckscher-Ohlin Theorem, U.S. exports should be goods that
A) intensively use labor input. B) intensively use capital input. C) use capital and labor in about equal proportions. D) use either labor or capital input, depending on the good. E) Not enough information to tell.
Prisoners Dilemma show
a. Rational choices lead to bad outcomes b. Rational choices lead to good outcomes c. That there are no ways to learn where the pitfalls lie d. None of the above
Which of the following is not a cost of illegal immigration in the U.S.?
a. The adverse impact on unskilled workers b. The damage to national property caused during the process of immigration c. Additional expenditure on healthcare at emergency clinics and hospitals d. Expenditure on public education on the children of immigrants. e. Expenditure on employment insurance programs for the illegal immigrants.