Which of the following is a reason why individual firms under perfect competition would not find it gainful to advertise their product?
A. The quantity of the product demanded is very large.
B. Firms produce a homogeneous product.
C. Firms do not make long-run profits.
D. The market demand curve cannot be increased.
Answer: B
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Which of the following four firms would most likely be part of a monopolistically competitive market?
A) Lee, J Brand, Joe's Jeans, Paper Denim & Cloth, Levi's, and Wrangler are all producers of jeans. B) Mark sells the tomatoes he grew in his backyard at the local farmers market. C) The WaveHouse is the only place in San Diego where you can ride an indoor 10 foot wave. D) Amara Massage is the only firm which specializes in pre- and post-natal massage.
An example of a transfer payment is
A) a welfare payment. B) a paycheck for a member of the National Guard. C) a purchase of a new bridge in Alaska. D) a teacher's paycheck.
Why would central bankers have to pay attention to forecasts regarding consumer sentiment and expectations of business owners and managers?
What will be an ideal response?
If the money supply curve is vertical, an increase in bond interest rates
A) is likely to cause banks to supply more money. B) is likely to cause banks to supply less money. C) has no effect on the money supply. D) is likely to cause the Federal Reserve to increase the money supply.