Monopolistic competition is characterized by:
a. homogeneous products
b. barriers to entry.
c. firms earning economic profits in the long run.
d. differentiated products.
d
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The law of diminishing marginal benefit explains why
A. addicts can never get enough. B. people will only consume their favorite goods and not try new things. C. demand curves slope downward. D. supply curves slope upward.
An initial deficiency in reserves of $20 and a required reserve ratio of .5 lead to a maximum demand deposit contraction of
A) $8. B) $40. C) $50. D) $80.
The distinction between exogenous and endogenous variables is important because:
a. Endogenous variables are determined within the Three-Sector-Model while exogenous variables are not. Exogenous variables are therefore treated as shocks to the Three-Sector-Model. b. Exogenous variables are fixed by definition. c. Endogenous variables are fixed by definition. d. Exogenous variables are determined within the Three-Sector-Model while endogenous variables are not. Endogenous variables are therefore treated as shocks to the three markets. e. Endogenous variables are real factors while exogenous variables are nominal factors.
Which of the following does not contribute to economic freedom?
A.Government regulation of production processes. B. Government enforced property rights. C. Government enforced legal rights. D. Government established political rights.