If new firms enter a monopolistically competitive industry, the demand facing a typical firm increases

a. True
b. False
Indicate whether the statement is true or false


False

Economics

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U.S. GDP excludes underground activities

Indicate whether the statement is true or false

Economics

A consumer's budget line for food (F) and shelter (S) is represented as F = 250 - 5S. If the price of shelter increases by 2 and consumption of shelter remains constant at 20, how will consumption of food change?

A) decrease by 10 B) decrease by 20 C) decrease by 40 D) decrease by 60

Economics

The theory of efficiency wages asserts that

a. employers set wages based on each employee's productivity. b. employers strive to hold wages below equilibrium levels. c. employers may find it profitable to pay above-equilibrium wages. d. efficient workers actually earn lower wages than those earned by inefficient workers.

Economics

If a market basket was defined in 2014 and it cost $10,000 to purchase the items in that basket in 2014, while it cost $12,000 to purchase those identical goods in 2015, then the price index for 2015 is

A. (12000/10000)*100=120. B. 100. C. (10000/12000)*100=83.33. D. unknown given this data.

Economics