Monopolistically competitive firms experience "excess capacity" in the short run but not in the long run.
Answer the following statement true (T) or false (F)
False
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Knowledge capital is nonrival in the sense that
A) firms do not compete to be the first to develop new technologies. B) two people can use the same knowledge to develop and produce a product. C) no single company can be excluded from the benefits of new technologies. D) firms can benefit from the research and development of rival firms without paying for that benefit.
What is TRUE of the aggregate supply curve in the classical model?
A) The aggregate supply curve is downward sloping. B) The aggregate supply curve is vertical. C) The aggregate supply curve is horizontal. D) The aggregate supply curve is not determined by the level of employment.
Positive externalities tend to create free-rider problems because positive externalities
A) appeal more to extroverts than to people who are reflective. B) are spill over benefits to people who don't pay for them. C) are concentrated in the hands of people living on unearned income. D) arise primarily from government programs.
In the United States, the number of hours worked per person has decreased since 1800. How would growth rates since 1800 be different if they were calculated for real GDP per capita instead of GDP per hour worked?
What will be an ideal response?