Which of the following is a characteristic of a monopolistically competitive market?I.Firms sell differentiated products.II.Each firm's product is a close substitute for other firms' products.III.Firms freely enter and exit the market.
A. I only
B. I and III only
C. II and III only
D. I, II, and III
Answer: D
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People who are not currently employed but say they want a job are counted as unemployed only if they: a. have previously held a job
b. are actively seeking employment. c. are discouraged workers. d. are between 16 and 65 years of age. e. are willing to accept any offer of employment.
In the classical model, the loanable funds market will clear when saving
a. equals investment plus government purchases minus net taxes b. equals net taxes c. equals investment d. equals investment plus government purchases e. minus taxes equals investment plus government purchases
It has been shown that when offered higher wages, women will work more hours. This is because
a. women tend to work more hours than men at any wage rate. b. the substitution effect is more dominant for women. c. the income effect is more dominant for women. d. women are more productive than men at higher wages.
Which of the following reduces the potential burden of an increase in debt on future generations?
a. the growth rate of output is high b. in response to increased debt, parents save more to leave their children larger bequests c. some current government spending benefits future taxpayers d. All of the above are correct.