The demand for the product of a monopolistically competitive firm is highly elastic when
A. there is a lot of product differentiation.
B. there are fewer firms in the industry.
C. there are a lot of close substitutes.
D. firms collude.
Answer: C
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The current income you would sacrifice to start your own lawn-cutting business is part of the
A) cost of doing business. B) present value of your initial investment. C) opportunity cost of invested funds. D) opportunity cost of starting a business.
In the above figure, starting at E3, if there is an increase in technology that causes a permanent increase in production capabilities
A) aggregate supply would shift to SRAS0 and LRAS1 would shift to LRAS0. B) aggregate supply would shift to SRAS2 and LRAS0 would shift to LRAS1. C) aggregate supply would shift to SRAS1 and LRAS0 would shift to LRAS1. D) aggregate supply would shift to SRAS1 and then return to SRAS0.
If an apartment owner charged ________ than a specified rent for housing, the government ________ impose a rent ceiling
A) more; can B) more; cannot C) less; can D) less; cannot E) less; might
Even if college imparted no additional knowledge to its graduates, they are likely to earn more because _____
a. firms like to say they only hire college graduates b. of the connections that one makes in college c. a college degree sends a signal of innate ability to employers d. their parents help them get a job