When the price level falls, the total quantities of goods and services demanded:
a. decreases.
b. stays the same.
c. increases.
d. increases and then decreases.
e. decreases and then increases.
c
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If the market demand in a monopolistically competitive industry increases, a likely result in the long run will be
A) less elastic demand curves facing each firm. B) a higher ratio of price to average cost. C) a larger number of firms producing a similar product. D) a transition from monopolistic competition to oligopoly.
Almost 85 percent of American firms have less than
A. 20 employees. B. 100 employees. C. 500 employees. D. 1,000 employees.
Suppose that Firm A cheats, and B does not. What is A's payoff from cheating?
a. 0 b. 50 c. -10 d. 25
Suppose the official unemployment rate is 10 percent. We can conclude without question that:
a. the same 10 percent of the people in the economy were out of work for the entire ear. b. one of every 10 people in the civilian labor force is currently unemployed. c. the same 10 percent of the people in the civilian labor force were out of work for the entire year. d. every person in the civilian labor force was out of work for 10 percent of the year. e. 10 percent of the people in the economy were out of work for 10 percent of the year.