Firms in all types of market structures pay attention to current rival firms' behavior
Indicate whether the statement is true or false
False. Monopolies don't have current rivals. Competitive firms only pay attention to the market price. Oligopolistic and monopolistic competitive firms pay attention to current rivals.
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An increase in the amount of money in circulation would cause a
A) shift of the aggregate demand curve to the right. B) shift of the aggregate demand curve to the left. C) movement up the aggregate demand curve. D) movement down the aggregate demand curve.
What is the value of the intra-industry trade index for an industry in which exports are $200 million and imports are $20 million?
a. 2.00 b. (200 + 20)/20 = 11.00 c. 20/[1/2 × (200 + 20)] = 0.18 d. (200 - 20)/200 = 0.90
Which of the following hypotheses is a plausible explanation for why U.S. households save so little?
A. Government assistance to low-income U.S. households has increased the demonstration effects on spending by the poor. B. Most Americans already own homes and, therefore, have less need for life-cycle saving. C. Government assistance to the elderly has reduced the need for life-cycling saving. D. The highly developed financial markets in the U.S. have reduced the need for precautionary saving by Americans.
Compared to a barter economy, using money increases efficiency by reducing:
A. transaction costs. B. the need to exchange goods. C. the need to specialize. D. inflation.