The retail market for video rentals is a monopolistically competitive market. A greater supply of video rental outlets along with the increased availability of substitutes like cable channels would likely make rental rates
a. decrease slightly
b. remain unchanged
c. crash
d. fluctuate wildly up and down
e. increase
C
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If the price of Pepsi increases, then there will be ___ of Pepsi.
a. An increase in the quantity demanded b. a decrease in the quantity demanded c. a decrease in the demand d. an increase in the demand
Suppose that a vaccine is developed for a highly contagious strain of flu. The likelihood that anyone will get this flu decreases as more people receive the vaccine. One of the demand curves below represents the private demand for the vaccine and the other represents the social demand for the vaccine.
The private demand for the vaccine is given by ________, and social demand for the vaccine is given by ________.
A. D2; MC B. D2; D1 C. D1; MC D. D1; D2
Starting from long-run equilibrium, the long-run impact(s) of a sharp drop in oil prices, compared to the original equilibrium, is(are):
A. higher inflation and the same output. B. the same inflation and the same output. C. lower inflation and lower output. D. higher inflation and lower output.
To put government debt into perspective, it should be:
a. Compared to a nation's balance on goods and services. b. Adjusted for inflation to find the real debt. c. Adjusted by any increase in wage rates caused labor union activity. d. All the above. e. None of the above.