Monopolistic competition differs from perfect competition because in monopolistically competitive markets
a. there are barriers to entry.
b. all firms can eventually earn economic profits.
c. each of the sellers offers a somewhat different product.
d. strategic interactions between firms are important.
c
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A fall in the price of a competing product will produce an outward shift in the demand curve for most products.
Answer the following statement true (T) or false (F)
Capital markets of poor developing countries that liberalized their financial systems to allow private asset trade with foreigners are called
A) direct foreign markets. B) foreign exchange markets. C) stock & bond markets. D) emerging markets. E) fledgling financial markets.
NOW (negotiable order of withdrawal) accounts
A. are really just interest-bearing checking accounts under a different name. B. cannot earn interest. C. can only be issued by commercial banks. D. can be issued by most insurance companies and real estate agencies.
Which of the following is NOT an automatic stabilizer?
A. Food stamps B. Unemployment insurance benefits C. Public assistance D. A supply-side tax cut