Monopolistic competition may lead to each of the following except
A. excess capacity.
B. over-differentiation.
C. peak efficiency.
D. non-price competition.
C. peak efficiency.
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The above diagram has a demand for money curve. Suppose the Fed initially sets the quantity of money equal to $0.6 trillion. Draw the supply of money curve in the figure
What is the equilibrium interest rate? Now suppose the Fed increases the quantity of money to $0.9 trillion. Draw the new supply curve. What is the new equilibrium interest rate?
Insurance deductibles __________ the __________ problem of insurance coverage.
A. are meant to reduce; adverse selection B. are meant to reduce; moral hazard C. unintentionally worsen; adverse selection D. unintentionally worsen; moral hazard
The wages for Nike workers increases. At the same time, we see the price for Adidas shoes increase. How does this affect the market for Nike shoes?
a. The demand curve will shift to the left; the supply curve will shift to the left b. The demand curve will shift to the left; the supply curve will shift to the right c. The demand curve will shift to the right; the supply curve will shift to the left d. The demand curve will shift to the right; the supply curve will shift to the right
If a consumer is maximizing his/her utility for a given income, the:
A. marginal utility for every good purchased would be the same. B. marginal utility per dollar spent for all goods would be the same. C. marginal utility per dollar for all goods would be at a maximum. D. total expenditure on each good would be the same.