Changing the price of good Y will
A. only affect the demand for that good.
B. have effects across some markets.
C. keep prices down in all markets.
D. have no effect.
B. have effects across some markets.
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Economists have long debated whether there is a significant loss of well-being to society in markets that are monopolistically competitive rather than perfectly competitive
Which of the following offers the best reason why some economists believe that monopolistically competitive markets are less efficient than perfectly competitive markets? A) In contrast to perfectly competitive markets, firms in monopolistically competitive markets can charge a price greater than average total cost in the short run. B) In contrast to perfectly competitive markets, firms in monopolistically competitive markets do not produce where price equals average total cost in long-run equilibrium. C) In contrast to perfectly competitive markets, neither allocative efficiency nor productive efficiency are achieved in monopolistically competitive markets. D) In contrast to perfectly competitive markets, firms in monopolistically competitive markets earn economic profits in long-run equilibrium.
The ability to produce a good at lower opportunity costs than another producer is known as
A) comparative advantage. B) marginal cost production. C) economies of scale. D) absolute advantage.
The World Trade Organization (WTO) is an international organization designed to:
A. monitor and enforce trade agreements, while also promoting free trade. B. monitor and enforce world banking policies, and lending between nations. C. provide a forum for all nations to have discussion on various international issues of concern. D. international governing body that is the final arbiter of all world trade.
If unemployment has been consistently higher than normal (full employment level), real GDP is