If firms in a monopolistically competitive industry are making profits in the short run, then
A) barriers to entry will be erected to keep out rivals.
B) some firms will ultimately exit the industry.
C) they will resort to advertising wars to help sustain these profits.
D) new firms will enter the market.
Answer: D
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Which of the following is true of import-substitution strategies?
a. They dominate the strategies of the developing world. b. They focus on the production of goods not produced in developed countries. c. They focus on the production of exportable goods. d. These strategies lower the price of the domestically produced goods than the imported goods. e. They generally require the removal of import barriers like tariffs or quotas.
Other things the same, a decrease in the price level causes the interest rate to
a. increase, the dollar to appreciate, and net exports to increase. b. increase, the dollar to depreciate, and net exports to decrease. c. decrease, the dollar to depreciate, and net exports to increase. d. decrease, the dollar to appreciate, and net exports to decrease.
The amount of money that can potentially be generated from each dollar of reserves is measured by the ______.
a. money multiplier b. discount rate c. interest rate d. required reserve ratio
Based on the data in the above table, the table shows a market for a good with
A) an external cost. B) an external benefit. C) a mixed externality. D) no externalities.