The primary contribution of the theory of monopolistic competition is the rationale it provides for product differentiation and advertising

Indicate whether the statement is true or false

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Economics

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Sophie is willing to sell her soccer ball for $10. Ruby is willing to pay $20 for the soccer ball. Sophie and Ruby agree on a price of $16. The gains from trade for Sophie equals ________ and the gains from trade for Ruby equals ________.

A. $5, $5 B. $6, $4 C. $10, $20 D. $4, $6

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Economics

Given an upward sloping aggregate supply curve, which of the following changes in the aggregate demand curve is observed when the Fed reduces the money supply?

a. The aggregate demand curve shifts leftward, lowering real GDP and the price level
b. The aggregate demand curve shifts leftward, raising real GDP and the price level.
c. The aggregate demand curve shifts leftward, lowering real GDP but raising the price level.
d. The aggregate demand curve shifts rightward, raising real GDP and the price level.
e. The aggregate demand curve shifts rightward, lowering real GDP but raising the price level.

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Economics

The U.S. Treasury yield curve:

A. always has a negative slope. B. always has a positive slope. C. assumes maturities are constant, and reflects the difference in risk. D. shows the relationship among bonds with the same risk characteristics but different maturities.

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Economics

All but which one of the following are cash transfer programs?

A. TANF. B. Supplemental Security Income (SSI). C. Low-rent public housing. D. Social Security.

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Economics