The feature that distinguishes monopolistic competition from perfect competition is that monopolistically competitive firms are
A. able to block the entry of other firms.
B. large relative to the market.
C. able to differentiate their products.
D. price takers.
Answer: C
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Tracy and Amy are playing a game in which Tracy has the first move at X in the decision tree shown below. Once Tracy has chosen either the top or bottom branch at X, Amy, who can see what Tracy has chosen, must choose the top or bottom branch at Y or Z. Both players know the payoffs at the end of each branch. 
In the equilibrium of this game:
A. Tracy gets 25 and Amy gets 225. B. Tracy gets 300 and Amy gets 200. C. Tracy gets 75 and Amy gets 150. D. Tracy and Amy both get 125.
In recent years, average household income in the United States was highest for households headed by someone aged
A) 35 to 44. B) 45 to 54. C) 55 to 64. D) 65 and over.
The price elasticity of demand measures:
a. how sensitive quantity demanded is to a change in supply. b. how sensitive quantity demanded is to a change in consumer taste and preference. c. how sensitive quantity demanded is to a change in income. d. how sensitive quantity demanded is to a change in price.
When the economy operates with a recessionary gap, the economy is self-correcting; when the economy operates with an inflationary gap, the economy is not self-correcting.
Indicate whether the statement is true or false.