In monopolistic competition, in the long run firms have
A) a capacity shortage.
B) excess capacity.
C) an economic profit.
D) an economic loss.
B
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The downward slope of a demand curve
A) represents the law of demand. B) shows that as the price of a good rises, consumers increase the quantity they demand. C) indicates how the quantity demanded changes when incomes rise and the good is a normal good. D) indicates how demand changes when incomes rise and the good is a normal good. E) indicates how demand changes when the price changes and the good is a normal good.
Which of the following is an example of money functioning as a medium of exchange?
A) Walmart accepting your $20 when you buy a Blu-ray. B) Apple pricing an iPhone at $299. C) Bank of America paying you 3 percent on your saving account. D) You saving your spare change in a jar before depositing them in your savings account.
After its early success in the 1970s, OPEC experienced a drop in world oil prices and a corresponding drop in oil revenues for its members, due to
A. the fall of the elasticity of demand for oil. B. the growth in the number of oil buyers. C. OPEC members failing to produce the output that was agreed upon. D. a sharp rise in the demand for oil.
Which of the following is NOT a characteristic of a monopoly?
A. There is only one seller. B. A monopolist is a price-taker. C. There exist barriers to entry. D. A monopolist's sales revenue is constrained by the market demand.