Monopolistically competitive firms differentiate their products by:
A. selling products with slightly different physical characteristics.
B. selling products at different locations.
C. creating a special aura or image for the product with advertising.
D. All of these
Answer: D
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If Alex uses $800 from her checking account to pay her credit card balance, her wealth:
A. increases by $800. B. does not change. C. decreases by $800. D. increases by $1,600.
Whether real seignorage revenue increases when the rate of money growth increases depends on whether
A. the rise in inflation outweighs the decline in real money holdings. B. the rise in the real supply of currency outweighs the decline in inflation. C. the rise in inflation ratio outweighs the decline in the real supply of currency. D. the rise in real money holdings outweighs the decline in inflation.
The main reason why income per capita and income per worker varies across countries is because ________
A) prices vary across countries B) currencies vary across countries C) productivity varies across countries D) interest rates vary across countries
The short-run aggregate supply curve slopes upward because: a. firms normally can purchase some inputs at prices that are temporarily fixed in the short run. b. firms seek maximum profits and always try to increase output in the short run
c. firms purchase inputs that increase in price as the price level rises in the short run. d. All of the above are correct.