A market in which firms can enter and leave so easily that firms in the market face competition from potential entrants is called a
A) contestable market.
B) cartel.
C) limit pricing market.
D) monopolistic competition market.
A
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According to this Application, three economists that studied data from the countries in the OECD found the value of the multiplier to be
A) 1.3. B) 2.3. C) 3.3. D) 4.3.
A monopolistically competitive firm may earn above normal profits or may incur losses in the short run
a. True b. False Indicate whether the statement is true or false
Comparative advantage is
A. only for individuals and not countries. B. when a person can produce all goods more quickly than other people. C. when a person can produce a good at a lower opportunity cost compared to another person. D. when the production possibilities curve shifts outward to the right.
Which of the following is an essential feature of any economic system?
a. absolute advantage b. the profit motive for producers c. a voting procedure for choosing leaders d. prices determine resource allocation e. scarce resources