Which of the following is true about monopolistic competition?
A) One firm serves as the entire industry.
B) A small number of firms serve the entire market.
C) It is competition among many firms producing similar but differentiated products.
D) Firms do not have economies of scale.
C
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Suppose the government imposes a tax of 20 percent on the first $50,000 of income and 30 percent on all income above $50,000 . What is the average tax rate when income is $60,000?
a. 21.7 percent b. 25.0 percent c. 46.7 percent d. 50.0 percent
Which of the following is not a tool the Fed uses to manage the money supply?
A) open market operations B) setting the discount rate C) expanding and contracting deposit insurance D) setting reserve requirements for deposits in the banking system
The rate of interest written on a contract between a borrower and a lender is the
a. nominal interest rate. b. real interest rate. c. implied interest rate. d. expected interest rate.
A form of economic organization that relies primarily on private ownership of productive assets, freedom of exchange, and market prices to allocate goods and resources is often called
What will be an ideal response?