Monopolistic competitors and perfect competitors are alike in
a. having horizontal demand curves.
b. zero economic profit in the short run.
c. zero economic profit in the long run.
d. relying on advertising to attract buyers to their products.
c
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Assume a demand deposit multiplier of 2 and a government expenditure of $10 million. If the Treasury borrows that much from the banking system, bank reserves will
A) rise by $2 million. B) rise by $10 million. C) rise by $20 million. D) remain unchanged.
If a product which costs $8 is sold at $10, the mark-up is
A) $2. B) 25%. C) 20%. D) None of the above
Which of the following countries has the lowest degree of economic freedom?
A) South Korea B) Mexico C) North Korea D) Botswana
Distinguish the concepts of comparative advantage and absolute advantage
What will be an ideal response?