Which of the following leads to monopolistic competition?
a. Fluctuation in the price of a product during a particular year
b. The variety of styles, flavors, locations, and characteristics associated with a product
c. A change in the total number of firms producing an identical product
d. Government intervention in the form of license and quality control associated with a product
b
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The self-correcting tendency of the economy means that rising inflation eventually eliminates:
A. unemployment. B. exogenous spending. C. recessionary gaps. D. expansionary gaps.
Which of the following would shift the FE line to the left?
A) A beneficial supply shock B) A decrease in labor supply C) An increase in consumer spending D) An increase in the money supply
A consumer's total transportation cost includes all of the following except which one?
A) the value of the consumer's time deciding which store to travel to B) the wear and tear on the consumer's car C) the cost of gasoline D) the value of the consumer's time getting to and from the store
According to the text, today's Lorenz curve is
A) a straight line. B) a vertical line. C) more bowed than in 1929. D) less bowed than in 1929.