Breezey Cola and High-Ten Dew are both large soft drink manufacturers that cover almost the entire market for cola. At the same time, there are 45 small firms that produce pulpy fruit juice. In the given scenario, which of the following statements is true?
a. The cola industry is likely to be a monopoly, while the pulpy juice industry is likely to be monopolistically competitive.
b. The cola industry is likely to be monopolistically competitive, while the pulpy juice industry is likely to be an oligopoly.
c. The cola industry is likely to be an oligopoly, while the pulpy juice industry is likely to be monopolistically competitive.
d. Both industries operate in an oligopolistic market structure.
c
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Which of the following is most likely to lead to an increase of 1% in the nominal demand for money?
A) An increase in real income of 0.5% B) A decrease in real income of 0.5% C) A decline of 1% in the price level D) An increase of 1% in the price level
"Crowding out" refers to federal government deficits financed by:
a. borrowing which increases interest rates and thereby reduces private spending. b. increasing taxes which reduces private spending. c. the federal government buying foreign debt which reduces the amount of government spending and government programs. d. reducing government spending which reduces interest rates.
During the 2008-2009 recession real GDP fell by about
a. 2% b. 4% c. 6% d. 8%
If a tax is proportional, the average tax rate
A. remains the same as income rises. B. rises as income rises. C. falls as income rises. D. falls as income falls.