We are using resources efficiently if we can produce more of one good without producing less of some other good that we value more highly
Indicate whether the statement is true or false
FALSE
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Monopolistic competition exists when there is one large firm in an otherwise perfectly competitive market
a. True b. False
Gross domestic product represents the money value of all final goods and services produced in the domestic economy within the year.
Answer the following statement true (T) or false (F)
The ratchet effect means that:
A. when aggregate demand increases, the price level remains constant. B. when aggregate supply decreases, the price level increases. C. when aggregate supply increases, the price level decreases. D. when aggregate demand decreases, the price level remains constant.
What is the trade-off that consumers face when buying the product of a monopolistically competitive firm?
A) Consumers pay higher prices but receive better quality goods compared to the output of perfectly competitive firms. B) Consumers pay a price greater than marginal cost, but have the luxury of choices more suited to their tastes. C) Consumers pay higher prices but the products are produced by highly efficient firms. D) Consumers pay lower prices but have fewer choices.