The demand curve faced by a monopolistically competitive firms is
A. downward sloping.
B. horizontal.
C. vertical.
D. unitary elastic.
Answer: A
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If the demand curve for a product shifts to the left and the supply curve for the product shifts to the left, the equilibrium quantity will decrease
Indicate whether the statement is true or false
Refer to Table 19-7. Suppose that a simple economy produces only four goods and services: iPods, t-shirts, bottled water, and oranges. Calculate nominal GDP for this simple economy
What will be an ideal response?
The hot spot problem is:
a. the U.S. obtains the majority of its oil supplies from politically unfriendly countries. b. some air pollutants such as sulfur dioxide have a greater effect nearby than further away. c. some air pollutants such as carbon dioxide have an equal effect nearby and further away. d. nuclear plants heat up nearby water, causing a decline in the native fish population.
If inflation is the major problem in the economy, which of the following would be an appropriate monetary policy response?
a. decreasing reserve requirements b. increasing the discount rate c. buying government bonds d. none of the above