Which statement is true?
A. Monopolistic competitors have very elastic demand curves.
B. Most monopolistic competitors are very large firms.
C. Less than half of all businesses in the United States are monopolistic competitors.
D. None of these statements are true.
A. Monopolistic competitors have very elastic demand curves.
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If a new home can be constructed for $150,000, what is the opportunity cost of federal defense spending, measured in terms of private housing? (Assume a defense budget of $700 billion.)
What is the difference between a price support and a price floor?
A) A price support is below equilibrium; a price floor is above it. B) A price support is above equilibrium; a price floor is below it. C) Government buys the excess supply to maintain a price floor, but not a price support. D) Government buys the excess supply to maintain a price support, but not for a price floor. E) There is no difference between the two.
The four components of aggregate expenditure (AE) are:
A. consumption, investment, exports, and imports. B. consumption, investment, government, and capital spending. C. consumption, investment, government, and net export spending. D. consumption, internet, government, and capital spending.
According to the graph shown, the equilibrium price is ________ and equilibrium quantity is ________.
A. $5; 30 B. $20; 10 C. $10; 20 D. $15; 30