Monopolistic competition is defined as a type of market structure where
A) many firms produce the good.
B) firms produce a homogeneous good.
C) there are barriers to entry.
D) firms can earn positive profit in the long run.
A
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Government policies intended to decrease aggregate spending and output are called ________ policies.
A. fiscal B. monetary C. aggregate D. contractionary
Consider two goods--one that generates external costs and another that generates external benefits. The actual market outcome would
a. result in output that is lower than the efficient output for both goods. b. result in output that is higher than the efficient output for both goods. c. result in output that is lower than the efficient output for the good with an external benefit and output that is higher than the efficient output for the good with an external cost. d. result in output that is higher than the efficient output for the good with an external benefit and output that is lower than the efficient output for the good with an external cost.
The two main types of managed care organizations are:
A. U.S. veterans' hospitals and university health clinics. B. health maintenance organizations (HMOs) and private nursing homes. C. health maintenance organizations (HMOs) and preferred provider organizations (PPOs). D. preferred provider organizations (PPOs) and nonprofit hospitals.
An increase in government spending will completely crowd out investment if
A. money demand is not sensitive to the interest rate. B. the economy is operating well below capacity. C. money supply is increased at the same time. D. the economy is operating at capacity.