A monopolistically competitive firm chooses its
a. price and quantity just as a monopoly does.
b. quantity but faces a horizontal demand curve just as a competitive firm does.
c. price but can sell any quantity at the market price just as an oligopoly does.
d. price and quantity based on the decisions of the other firms in the industry just as an oligopoly does.
a
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If the central bank can act as a lender of last resort during a banking panic, banks can
A) encourage the public to borrow directly from the central bank, and this will worsen the banking panic. B) satisfy customer withdrawal needs and eventually restore the public's faith in the banking system. C) borrow more and more money from the central bank, and this will lower its reserves and decrease the public's faith in the banking system. D) call in their loans to their customers and eventually restore the public's faith in the banking system.
Why is it important to distinguish nominal GDP from real GDP?
Which of the following sayings best represents the concept of opportunity costs?
a. "A glass can be half empty or half full." b. "When in Rome, do as the Romans do." c. "There is no such thing as a free lunch." d. "No taxation without representation." e. "What's up?"
A factor of production is the same as
a. the amount of a good produced b. the price of a good c. a profit of a firm d. an opportunity cost e. a resource