In monopolistic competition:
a. firms collude with each other and act interdependently.
b. there are substantial entry barriers.
c. there are many close substitutes for the products offered by each firm.
d. there are a few sellers each offering a unique product.
c
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In 2011, Armenia had a real GDP of approximately $4.21 billion and a population of 2.98 million. In 2012, real GDP was $4.59 billion and population was 2.97 million. Armenia's real GDP per person in 2012 was
A) $1,545. B) $380. C) $1,413. D) $132.
Refer to Figure 5-9. The efficient output is
A) Q1. B) Q2. C) Q3. D) Q4.
Even though it may seem that nations have a wide variety of policy options to stabilize their economies, there are a number of issues to be considered and overcome. Which of the following is NOT an issue confronting policy makers?
A) the desire to maintain fixed exchange rates or membership in a pegged currency bloc B) long and uncertain time lags when policy effects will occur C) the pass-through issue, when little effect occurs on the real effective exchange rate D) international controls that limit the ability of any nation to determine its exchange rate policy
According to Nobel Prize winning economist Joseph Stiglitz
A. over the years the IMF has markedly changed. B. the IMF was founded on the belief that markets often worked badly. C. the IMF now champions the free market as the best way to run an economy. D. All of the choices are true.