The demand curve for a monopolistic competitor is based on the extent of its product differentiation and how many competitors it faces
a. True
b. False
Indicate whether the statement is true or false
True
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In a situation of mutual interdependence and identical products, managers of oligopolistic firms ________ attempt to differentiate their product to earn ________ economic profit.
A) should; positive B) should not; positive C) should; negative D) should; zero
Crowding in is the result of
A. Rising unemployment. B. Rising government borrowing. C. Falling interest rates. D. Declining business confidence.
Suppose that the economy is operating below the full employment level of real GDP. If a liquidity trap exists, a(an) ________ policy would be most effective for solving the problem.
A. expansionary monetary policy B. contractionary fiscal policy C. expansionary fiscal policy D. contractionary monetary policy
The following table provides data for an economy in a certain year. Consumption expenditures1,000Imports600Government purchases of goods and services700Construction of new homes and apartments500Sales of existing homes and apartments600Exports500Government payments to retirees200Household purchases of durable goods300Begining-of-year inventory500End-of-year inventory600Business fixed investment300Given the data in the table, compute the investment component of GDP.
A. 800 B. 900 C. 300 D. 400