With respect to the business cycle, describe the difference between the expansion phase and the recovery phase
The recovery phase is the period when Real GDP is rising, up until it reaches the level of the initial peak. The expansion phase represents an increase in Real GDP, beyond the initial peak and continues until the next peak.
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In conditions of monopolistic competition,
a. each firm charges the same price. b. there are only two producers. c. there are many firms. d. products are identical.
When the benefit of another hour of work is greater than the opportunity cost, we would expect the worker to work:
A. another hour. B. exactly that amount. C. an hour less. D. Cannot be determined without more information.
A firm that has taken advantage of economies of scale and expanded to become the only producer in the market is
A. a cartel. B. an oligopolist. C. a monopolistic competitor. D. a natural monopoly.
The interest rates charged on most credit cards is:
A. lower than they should be given the problem of adverse selection. B. high due to the problem of adverse selection. C. high due to diseconomies of scale that exist in this market. D. high because Visa and MasterCard have a virtual monopoly on this business.