Other things equal, the slope of the aggregate expenditures schedule will increase as a result of:
A. a decline in the size of the inflationary gap.
B. an increase in the MPC.
C. an increase in the MPS.
D. a decline in the general price level.
B. an increase in the MPC.
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The above figure shows the market for anti-freeze. The government imposes the sales tax shown in the figure on sellers. What is the amount of the tax?
A) $1 per gallon B) $2 per gallon C) $3 per gallon D) $4 per gallon
In a monopolistically competitive industry, the competitive element results from ____ and the monopoly element results from ____. a. product differentiation; substantial barriers to entry
b. a large number of firms and free entry; product differentiation. c. advertising; product differentiation. d. product differentiation; the small number of large producers.
One of the reasons that Kodak and Fuji films advertise so much is that
a. they want to stimulate market demand b. each hopes to create a natural monopoly c. they are in a perfectly competitive industry where advertising is the difference between success and failure d. they want to develop brand loyalty e. they want to increase their price elasticities of demand
For many years the United States was able to retain a system for drafting young men into the armed forces because
What will be an ideal response?