Under what condition will an increase in aggregate demand result in no increase in the price level?
A. The aggregate demand curve is upward sloping.
B. The aggregate demand curve intersects the upward-sloping segment of the aggregate supply curve.
C. The aggregate demand curve intersects the horizontal segment of the aggregate supply curve.
D. The aggregate demand curve intersects the downward-sloping segment of the aggregate supply curve.
C. The aggregate demand curve intersects the horizontal segment of the aggregate supply curve.
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Which of the following is a difference between an oligopoly with differentiated products and a monopolistic competition?
A) There are no barriers to entry in an oligopoly with differentiated products, while there are huge barriers to entry in a monopolistic competition. B) There are huge barriers to entry in an oligopoly with differentiated products, while there are minimal barriers to entry in a monopolistically competitive market. C) Firms in an oligopoly market with differentiated products charge a price higher than marginal cost in the long run, while firms in a monopolistic competition charge a price lower than marginal cost in the long run. D) Firms in an oligopoly with differentiated products charge a price lower than average total cost in the long run, while firms in a monopolistic competition earn a price higher than average total cost in the long run.
"According to the Coase theorem, if Gabriel wants the local television station to cease having helicopters fly over his house at night, he will be more likely to be able to reach an agreement with the station if the property right to the airspace is
clearly defined and the transaction costs of negotiating are high." Is this statement true or false? Explain your answer.
A short-term debt instrument issued by well-known corporations is called
A) commercial paper. B) corporate bonds. C) municipal bonds. D) commercial mortgages.
An educated populace contributes to economic growth because
A) schools provide many jobs for teachers. B) education allows workers to develop skills that increase their productive capabilities. C) educated people are more likely to live in poverty. D) educated people understand the importance of protectionism.