Monopolistically competitive firms do NOT differentiate their products by:
A. changing the products' physical characteristics.
B. selling products at different locations.
C. offering different levels of service that come with a product.
D. charging different prices to different groups of consumers.
Answer: D
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Intended investment is
a. always equal to saving b. what producers hope will equal saving c. the investment producers actually make d. the investment producers had planned to make but may have ended up not making e. what producers hope ends up as inventory
If the marginal tax rate is too high, it can cause all of the following except
A. Government tax receipts to decline. B. Work effort to decrease. C. Businesses to produce more. D. The rate of saving to decline.
Suppose Johnson's Rubber Factory belches black smoke into the air over the city of Bellowsville. If the city of Bellowsville attempts to internalize the external costs associated with the production of rubber with a pollution tax, then we expect:
A. at each price, a smaller quantity of rubber will be supplied by Johnson's Rubber Factory. B. at each price, a larger quantity of rubber will be supplied Johnson's Rubber Factory. C. Johnson's Rubber Factory will not change the amount of rubber supplied at each price. D. Johnson's production costs not to change.
In a budget line, a decrease in the price of the good on the y axis is graphically represented by:
A. a rightward parallel shift of the budget line. B. a steeper slope of the budget line. C. a leftward parallel shift of the budget line. D. a flatter slope of the budget line.