The primary difference between monopolistic competition and perfect competition is the number of firms in the market
Indicate whether the statement is true or false
F
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Which of the following statements is an example of the Fed's conditional commitment policy?
A) "In these circumstances, the Committee believes that policy accommodation can be maintained for a considerable period." B) "The Committee anticipates that weak economic conditions are likely to warrant exceptionally low levels of the federal funds rate for some time." C) "Policy accommodation can be removed at a pace that is likely to be measured." D) "The exceptionally low range for the federal funds rate will be appropriate at least as long as the unemployment rate remains above 6-1/2 percent, and inflation between one and two years ahead is projected to be no more than a half percentage point above the Committee's 2 percent longer-run goal."
During World War II
A) the Board of Governors was temporarily disbanded. B) the Fed was not allowed to make discount loans. C) the Fed agreed to hold interest rates on short-term Treasury securities at low levels. D) the Fed agreed not to buy Treasury securities.
With a lump-sum tax, the
a. marginal tax rate is always less than the average tax rate. b. average tax rate is always less than the marginal tax rate. c. marginal tax rate falls as income rises. d. marginal tax rate rises as income rises.
Answer the following statement true (T) or false (F)
1) If the coefficient of cross elasticity of demand is positive, the two products are complementary goods. 2) An income elasticity coefficient of -1.8 means the product is a normal good. 3) A cross elasticity of demand coefficient of +2.5 indicates that the two products are substitutes. 4) We would expect the coefficient of cross elasticity of demand for DVD players and DVDs to be positive.