Perfect competition and monopolistic competition are similar because under both market structures,
a. there are zero economic profits in the long run.
b. production takes place at the least-cost combination.
c. there are few firms.
d. entry is difficult.
e. differentiated products are produced.
a
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Money supply M1 does not include the currency held by
A. households in their wallets or purses. B. business firms. C. state and local governments. D. commercial banks.
In the short run, the horizontal sum of all of the marginal cost curves (above minimum average variable cost) of individual firms in a competitive market defines the
a. average variable cost curve b. market demand curve c. market supply curve d. average total cost curve e. total quantity demanded
Assume that the expectation of a recession next year causes business investments and household consumption to fall, as well as the financing to support it. If the nation has low mobility international capital markets and a fixed exchange rate system, what happens to the quantity of real loanable funds per time period and GDP Price Index in the context of the Three-Sector-Model?
a. The quantity of real loanable funds per time period rises and GDP Price Index rises. b. The quantity of real loanable funds per time period falls and GDP Price Index falls. c. The quantity of real loanable funds per time period rises and GDP Price Index falls. d. The quantity of real loanable funds per time period and GDP Price Index remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.
If Congress instituted an investment tax credit
a. it would make buying bonds more desirable, so the demand for loanable funds would shift. b. it would make buying capital goods more desirable, so the demand for loanable funds would shift. c. it would make buying bonds more desirable, so the supply of loanable funds would shift. d. it would make buying capital goods more desirable, so the supply of loanable funds would shift.