Refer to the diagram. The multiplier in this economy is:
A. 0E/0A.
B. BD/FG.
C. FG/BD.
D. BD/AD.
B. BD/FG.
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A monopolistically competitive firm always faces a(n) ________
A) horizontal demand curve B) vertical demand curve C) upward sloping demand curve D) downward sloping demand curve
A recent survey by India's central bank reported that spending plans by firms on large new projects fell by 46 percent in the year ending March 2012, compared with the prior year. This decrease will most directly impact
A) physical capital growth. B) human capital growth. C) technological change. D) population growth.
In the long run, a monopolistically competitive firm's price equals
A) its average total cost and its marginal cost. B) its average total cost but not its marginal cost. C) its marginal cost but not its average total cost. D) neither marginal cost nor its average total cost.
In 2010, the Center for Disease Control has recommended that every child between the ages of 6 months and 18 years be vaccinated,
except those with a serious egg allergy. Dr. Berreman states,"By protecting ourselves from flu, we also protect our families and neighbors." Which is a solution that could be used to achieve a more efficient allocation of resources in the presence of this externality? A) The government could tax the producers of the flu vaccine. B) The government could tax the consumers of the flu vaccine. C) The government could offer a free flu vaccine clinic. D) The government could increase the price of flu vaccines.