Which set of characteristics below best describes the basic features of monopolistic competition?
A. easy entry, few firms, and standardized products
B. easy entry, many firms, and standardized products
C. easy entry, many firms, and differentiated products
D. barriers to entry, few firms, and differentiated products
Answer: C
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Refer to the table above. If the world price of trousers is $8 per pair, then which of the following statements is true?
A) Country B, Country C, and Country D will export trousers, whereas Country A will import trousers. B) Country A, Country C, and Country D will import trousers, whereas Country B will export trousers. C) Only Country B will import trousers, whereas Country A, Country C, and Country D will export trousers. D) All countries will import trousers.
An unexpected fall in the Purchasing Managers' Index should send bond prices __________ and stock prices __________
A) up; up B) up; down C) down; up D) down; down
The escape clause in U.S. trade law:
a. enables the United States to withdraw from NAFTA. b. permits the U.S. government to impose trade barriers if fairly traded imports are the cause of significant injury to a U.S. industry and its workers. c. permits the government to impose trade remedies against nations that unfairly subsidize their exports to the United States. d. enables immigrants to return to their home countries.
You shop at the local drugstore because it is convenient. This situation is best described as:
a. a market with horizontal demand. b. monopolistic competition with differentiation by location. c. differentiation by a cartel. d. differentiation by style or type.