What is "monopolistic" about monopolistic competition?
What will be an ideal response?
Firms sell goods that are close substitutes for each other, but an individual firm's product is unique. Since each version of the product is only sold by one firm, that firm is a monopolist in selling its version of the product.
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The reserve ratio is 10 percent. If the bank receives a customer deposit of $100,000, then an immediate effect is
A) a reduction in the bank's total assets of exactly $10,000. B) no change in the bank's total assets or total liabilities. C) a reduction in the bank's total liabilities of exactly $10,000. D) an increase in the bank's reserves of exactly $10,000.
The see-through office building, and the boarded-up factory outlet mall may be attributed to
A) changing conditions which no longer justify the project for which the buildings were produced. B) deregulation of S & Ls. C) extreme business optimism. D) all of the above.
An increase in the average tax rate that ________ the budget deficit in an example of ________
A) raises, automatic stabilization B) raises, discretionary fiscal policy C) lowers, automatic stabilization D) lowers, discretionary fiscal policy
Suppose studies showed that 12 percent of all teens choose to participate in underage drinking. If policymakers wish to reduce the amount of underage drinking, they should:
A. not share that statistic, and let teens think that it's a huge problem with all teens. B. Informing them will have no impact on their individual behavior. C. let teens know that the great majority of teens currently do not drink. D. The statistic is likely to influence their personal decision, but it is impossible to predict in what way without more information.