The assumption that firms meet the demand for their products at preset prices is the key assumption upon which ________ is built.
A. Okun's Law
B. the supply and demand model
C. quantity equation for money
D. the basic Keynesian model
Answer: D
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Starting from long-run equilibrium, an increase in autonomous consumption results in ________ output in the short run and ________ output in the long run.
A. higher; higher B. higher; potential C. lower; higher D. lower; potential
In contrast to perfect competition, in a monopolistically competitive industry:
a. new firms entering the market produce a good that is identical to the existing ones. b. new firms entering the market produce a completely different product. c. there are legal restrictions on the entry of new firms. d. new firms entering the market produce a close substitute, not an identical or standardized product. e. new firms are allowed to enter the industry but there are legal restrictions on their exit.
Robert Nozick criticizes Rawls's concept of justice by using an example of
a. minimum wage laws. b. the grade distribution in a class. c. a leaky bucket. d. the price of tea in China.
Describe the characteristics of a monopolistically competitive industry.
What will be an ideal response?