The loss of efficiency that occurs in monopolistic competition has to be weighed against the gain of
A) higher wages for employees.
B) an increase in employment.
C) greater product variety.
D) reduced environmental damage.
C
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A decrease in Swiss prices will cause
A) an increase in the demand for U.S. dollars and an increase in the exchange rate of Swiss francs per dollar. B) a decrease in the demand for U.S. dollars and a decrease in the exchange rate of Swiss francs per dollar. C) an increase in the supply of U.S. dollars and a decrease in the exchange rate of Swiss francs per dollar. D) a decrease in the supply of U.S. dollars and an increase in the exchange rate of Swiss francs per dollar.
Command-and-control legislation, as compared to incentive-based regulation:
a. encourages the use of comparative advantage in the short run, and the development of new technology in the long run. b. encourages the use of comparative advantage in the short run, but discourages the development of new technology in the long run. c. discourages the use of comparative advantage in the short run, but encourages the development of new technology in the long run. d. discourages the use of comparative advantage in the short run, and discourages the development of new technology in the long run.
Vertical equity in income taxation refers to the notion that persons with different levels of income should be taxed differently.
Answer the following statement true (T) or false (F)
If private sector investment does not respond much to interest rate changes, then
A) there will be more crowding out when expansionary policies are undertaken. B) there will be less crowding out when expansionary policies are undertaken. C) fiscal policy will be less effective than monetary policy. D) monetary policy will be more effective than fiscal policy.