Which of the following is an example of a capital good?
A. A new speaker system sold to an automaker for installation in a car
B. A metal-stamping machine used to produce cars sold to an automaker
C. A new mobile phone sold to a teenager
D. A new car sold to a family
Answer: B
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Perfect competition and monopolistic competition are similar in that firms in both types of market structure will
A) act as price takers. B) produce a level of output where price equals marginal cost. C) earn zero profit in the long run. D) act as price setters.
Which of the following is the most accurate description of the US between 1880 and 1920?
a. The United States became the leading manufacturer in the world in terms of total production and output per worker. b. The quality of manufactured goods dropped c. American families bought fewer finished products, and instead saved money by increasingly buying materials and building things at home. d. No advertising was used because TV and radio had not yet been invented.
Which nation took the bold step of abandoning its own currency and adopting the U.S. dollar?
a. China b. India c. Mexico d. Ecuador
Refer to the accompanying figure.
Starting from long-run equilibrium at point C, an adverse inflation shock that increases inflation from ? to ?1 will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies.
A. A; C B. A; B C. B; A D. B; C