Society benefits from monopolistic competition because the firms are allocatively efficient
a. True
b. False
Indicate whether the statement is true or false
False
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Which of the following is one explanation as to why the aggregate demand curve slopes downward?
A) Decreases in the price level raise the interest rate and increase consumption spending. B) Decreases in the price level raise the interest rate and increase investment spending. C) Decreases in the price level raise real wealth and increase consumption spending. D) Decreases in the U.S. price level relative to the price level in other countries lower net exports.
Which of the following is true of markets? a. Markets help to acquire a specialized set of skills and use the pay to buy goods and services
b. Markets allow consumers to consume only those goods they can produce. c. Markets are based on reciprocity and require a mutual coincidence of wants between traders. d. A market is a cashless economic system in which services and goods are traded at negotiated rates.
Many economists believe a general sales tax (particularly on items such as food) takes a larger proportion of income from low-income households than from high-income households. If this is true, a general sales tax is a
a. regressive tax. b. proportional tax. c. neutral tax. d. progressive tax.
Firms are organizations that
A. transform outputs into inputs. B. take advantage of the public. C. demand consumer outputs. D. transform resources into products.