Which of the following does not happen when new firms enter a monopolistically competitive industry?
a. The demand curve for each of the existing firms will fall
b. The demand curve for each of the existing firms will move inward.
c. The demand curve for each of the existing firms will becomes relatively more elastic.
d. The demand curve for each of the existing firms will shift to the right.
d
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Which of the following policies are likely to increase national savings?
a. running larger government budget deficits. b. decreasing taxes on stock dividends. c. reducing taxes on consumption. d. having to pay higher interest rates on the national debt. e. none of the above.
Allocative efficiency is achieved in an industry when firms supply those goods and services that provide consumers with a marginal benefit equal to the marginal cost of producing those goods and services
Indicate whether the statement is true or false
The Chinese policy of one child per family provided McDonald's the opportunity to actively market to:
A) children. B) senior citizens. C) parents. D) none of the above.
When the actual unemployment rate is less than the natural unemployment rate, the economy is in a recessionary gap
Indicate whether the statement is true or false