The key difference(s) between perfect competition and monopolistic competition is
A. the products sold are slightly different in perfect competition.
B. there is poor information about prices in perfect competition.
C. the products sold are slightly different in monopolistic competition.
D. there is poor information about prices in monopolistic competition.
Answer: C
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Suppose a country's net exports equal -$21.3 billion. Which of the following will happen if the volume of exports increases by $1 billion, imports remaining unchanged?
A) The country's net exports will be equal to -$20.3 billion. B) The country's net exports will become positive. C) The country's net exports will be equal to -$22.3 billion. D) The country's net exports will be zero.
In the long run, the monopolistically competitive firm's demand curve will
A) intersect the ATC at its minimum point. B) intersect the ATC curve somewhere past the minimum point. C) become tangent to the ATC curve at its minimum point. D) become tangent to the ATC curve somewhere to the left of its minimum point.
In 1963, the average price for a gallon of gas was about $0.30. In 2014, the average price for a gallon of gas was about $3.37. What does this data show?
a. From 1963 to 2014, the money demand curve shifted leftward. b. The demand for money has increased significantly from 1963 to 2014. c. In 1963, people carried more money in their pockets than they did in 2014. d. The interest rates were most likely lower in 1963 than in 2014.
Discretionary fiscal policy by the federal government involves
A. legislative variations in spending and tax policies. B. using built-in stabilizers to smooth economic activity. C. relying on wage and price controls to ensure price level stability. D. presidential variations in spending and taxes without Congressional approval.