Although monopolistically competitive markets offer consumers a wide variety of differentiated products, there may still be insufficient variety if
a. there are large fixed costs in the market.
b. there are no barriers to entry in the market.
c. the business-stealing externality is present in the market.
d. the government does not impose regulations on the market.
a
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Medical savings accounts _____
a. provide insurance for very small health care expenditures b. provide little accountability for small purchases c. provide catastrophic coverage d. all of the above e. a and b
Permanent differentials in resource prices will cause
a. all of the following b. the allocation of fewer resources to lower-paid uses c. the equalization of payments for the same resource in different uses d. no change in the allocation of resources e. the allocation of more resources to higher-paid uses
During a period of economic depression, such as has existed for a long period in Japan, a profit-oriented bank will act in such a way that
a. dampens the fluctuations. b. makes the depression worse. c. is neutral with respect to the fluctuations. d. is counter-cyclical and stabilizing.
According to Friedman and Phelps, policymakers face a tradeoff between inflation and unemployment
a. only in the long run. b. only in the short run. c. in neither the long run nor short run. d. in both the short run and long run.