Monopolistic competition is characterized by a few sellers offering similar products, whereas oligopoly is characterized by many sellers offering differentiated products
a. True
b. False
Indicate whether the statement is true or false
False
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In the figure above, using the midpoint method, what is the price elasticity of demand between points A and B?
A) 0.05 B) 0.13 C) 0.43 D) 1.00 E) 2.33
A decrease in the real interest rate occurs when ________
A) there is an autonomous tightening of monetary policy B) expected inflation increases, relative to the nominal interest rate C) a decrease in autonomous spending causes a decrease in equilibrium output D) all of the above E) none of the above
Mike Miller is the town manager of Medfield, a town with 50,000 residents. At a recent town meeting, several citizens proposed building a large public swimming pool in the center of town for all of the residents to enjoy. A survey of all 50,000 residents revealed that the pool would be worth $50 to each of them. The cost to build the swimming pool is $1,000,000 . Which of the following is the
most efficient option? a. The pool should be built and paid for with donations collected from residents, as these donations should more than cover the cost of the pool. b. The pool should be built and paid for by the town government and paid for with a tax on the residents because all residents would benefit from it but some residents would not donate if they were asked. c. The pool should be built and paid for by the wealthiest ten percent of the residents. d. The pool should not be built because the social value does not exceed the cost.
As both the budget and regulatory powers of government grow, public choice analysis indicates that individuals and groups will find it in their interest to do which of the following?
What will be an ideal response?