Which of the following conditions distinguishes the monopolistic competitor from the monopolist?
A. Profit-maximizing rule
B. Downward slope of demand curve
C. Entry of rivals
D. Short-run economic profits
Answer: C
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"Crowding-out" occurs in the IS-LM model as rising government spending requires a ________ in the interest rate in order to ________ the demand for money at the new equilibrium, thus ________ planned private investment
A) rise, keep constant, lowering B) rise, raise, lowering C) rise, lower, raising D) fall, keep constant, raising E) fall, raise, lowering
The 'WHAT goods and services does the US produce' question can best be answered using data about which of the following?
A. Productivity. B. The distribution of GDP among different income quintiles. C. Per capita GDP. D. The distribution of output in markets, specifically among manufacturing, services, and agricultural sectors.
A perfectly competitive market results in efficiency because
A. Price rises high enough to equal marginal cost. B. MC < P. C. Price is driven down to minimum ATC. D. Zero economic profit is achieved.
National saving equals private saving plus government saving, which in turn equals
A. GDP + NFP. B. GDP + NFP - C - G. C. GDP + C + G. D. C + S + T.