Identify the market structure characterized by many small firms selling somewhat different products
a. Monopoly
b. Monopolistic competition
c. Perfect competition
d. Duopoly
b
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Holding all else constant, if the U.S. government restricts capital outflows, then the equilibrium value of the U.S. dollar will:
A. appreciate B. remain fixed. C. depreciate. D. be determined by the Federal Reserve.
What is dumping and why would firms engage in it?
What will be an ideal response?
It is true that the distribution process carried out by the price system
A. accomplishes the task more efficiently than central planners would. B. favors the rich. C. is superior to other rationing mechanisms because it is able to pay attention to individual consumer preferences. D. All of these responses are true.
While waiting in line to buy one cheeseburger for $1.50 and a medium drink for $1.00, Sally notices that she could get a value meal that contains both the cheeseburger and medium drink and also a medium order of fries for $2.75 . She thinks to herself, "Is it worth the extra 25 cents to get the medium fries?" To an economist, Sally's decision is an example of
a. marginal decision making. b. basing decisions on total, rather than marginal, value. c. an unintended consequence. d. the fallacy of composition.