In the long run, the equilibrium number of monopolistically competitive firms with trade:
a. is less than the total number of firms worldwide in autarky.
b. is the same as the total number of firms worldwide in autarky.
c. is greater than the total number of firms worldwide in autarky.
d. may be less than, the same as, or greater than the total number of firms worldwide in autarky.
Ans: a. is less than the total number of firms worldwide in autarky.
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Which of the following statements best describes allocative efficiency?
a. As additional increments of resources are added to producing a good or service, the marginal benefit from those additional increments will decline. b. when it is impossible to produce more of one good (or service) without decreasing the quantity produced of another good (or service) c. when a country can produce a good at a lower cost in terms of other goods; or, when a country has a lower opportunity cost of production d. when the mix of goods being produced represents the mix that society most desires
During the financial crisis of 2007-2009, why did the Federal Reserve begin to utilize various types of unconventional monetary policy?
a. the federal funds rate had already been increased as much as possible b. the discount rate had already been increased as much as possible c. the federal funds rate had already been reduced to zero d. the discount rate had already been reduced to zero
The firm's long-run supply curve begins at an output of
A. 30.
B. 40.
C. 55.
D. 70.
The savings function tends to ____________________ during and shortly after a recession.
Fill in the blank(s) with the appropriate word(s).