A monopolistically competitive firm differs from a perfectly competitive firm in that a monopolistically competitive firm:
a. faces a downward-sloping demand curve for its product
b. faces a horizontal demand curve at the market-clearing price.
c. is able to earn profits in the long run.
d. faces virtually no barriers to entry.
a
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An increase in taxes will increase total planned expenditures for goods and services
Indicate whether the statement is true or false
In terms of price indexes, what is a COLA?
a. A measure of the quality of living b. A consumer price adjustment c. An increase in wages designed to match consumer price increases d. An estimate of gross domestic product e. A measure of producer surplus
If technological advancements reduce the cost of pollution abatement, all else equal:
A. the price of a pollution permit will fall. B. the price of a pollution permit will increase. C. the government will be forced to issue more permits. D. the government will be forced to issue fewer permits.
The Federal Open Market Committee consists of the seven members of the ________, the president of the Federal Reserve Bank of New York, and ________
A) Federal Reserve's Board of Governors; four members of the Council of Economic Advisors B) Federal Reserve's Board of Governors; four presidents from the other 11 Federal Reserve banks C) Council of Economic Advisors; four presidents from the 11 Federal Reserve banks D) Council of Economic Advisors; four members of the U.S. Banking Committee