In a monopolistically competitive scenario, the demand curve for an existing firm ____ when firms exit the industry
a. becomes more inelastic
b. becomes vertical
c. becomes horizontal
d. becomes more elastic
a
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Utility is
a. easily measured because all people derive the same utility from consumption b. easily measured because it is an objective concept c. easily measured because it is a subjective concept d. hard to measure because it is a subjective concept e. hard to measure because it is an objective concept
All of the following would shift a product's demand curve except a(n): a. increase in the price of the product
b. decrease in consumer income. c. increase in the price of a substitute. d. increase in the price of a complement.
The demand for euros in the foreign exchange market equals 8,000 - 2,000 e and the supply of euros in the foreign exchange market equals 3,000 + 3,000 e, where e is the nominal exchange rate expressed in U.S. dollars per euro. If the euro is fixed at 1.25 U.S. dollars per euro, then the euro is ________ and Euroland has a balance-of-payments ________.
A. undervalued; surplus of 1,250 euros B. overvalued; deficit of 1,250 euros C. undervalued; deficit of 1,250 euros D. overvalued; surplus of 1,250 euros
The marginal propensity to consume _____
Fill in the blank(s) with the appropriate word(s).