Which of the following is characteristic of a monopolistically competitive firm?
A. The firm faces an upward-sloping demand curve.
B. The firm faces an inelastic demand curve.
C. The firm faces a horizontal demand curve.
D. The firm produces a differentiated product.
Answer: D
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Contractionary monetary policy and expansionary fiscal policy both reduce net exports in an open economy
Indicate whether the statement is true or false
With two-part pricing
A) the consumer puts down a deposit and then pays the rest when she picks up the goods purchased. B) the average price paid varies with the number of units purchased. C) the consumer is limited in the number of units that can be purchased. D) consumers are required to buy two units of a good.
Refer to the payoff matrix below. Which of the following is the Nash Equilibrium?
A) Set Low Price/Set Low Price
B) Set High Price/Set Low Price
C) Set High Price/Set High Price
D) Set Low Price/Set High Price
Which statement is false?
A. There are Federal Reserve district banks in Atlanta, Minneapolis, and Kansas City. B. There are 12 Federal Reserve District Banks. C. The Federal Reserve System was set up in 1935. D. None of the statements are false.