Which of the following is a characteristic of a monopolistically competitive market?I.Firms sell differentiated products.II.Each firm is earning a zero economic profit in the long run.III.Potential entrants face artificial barriers to entry.
A. I only
B. I and II only
C. II and III only
D. I, II, and III
Answer: B
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Suppose the economy's production function is Y = AK0.3N0.7. If K = 2000, N = 100, and A = 1, then Y = 246. If K rises by 10%, and A and N are unchanged, by how much does Y increase?
A) 30% B) 10% C) 6% D) 3%
The theory of factor pricing uses supply-demand analysis.
Answer the following statement true (T) or false (F)
A recession is a period when
a. output growth is negative for two consecutive quarters b. actual output falls below potential output and the rate of unemployment falls below the high- employment benchmark. c. unemployment reaches 10 percent for an extended period of time. d. actual output falls below potential output and the rate of unemployment rises above the high-employment benchmark..
Which of the following could be described as an aggregate demand-driven model of business cycles?
a. Keynesian model. b. monetarist model. c. New Keynesian model. d. classical model. e. a, b, and c.