Advertising plays a role in reducing the cross-price elasticity of demand.
Answer the following statement true (T) or false (F)
True
Firms with market power attempt to preserve and extend that power through advertising.
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Who of the following would be considered a discouraged worker?
A. Marissa has a Ph.D. in physics, but is currently employed full time driving a taxi. B. Anna Marie has been looking for a job every day for the last month, but has not been hired. C. Ray wants to work forty hours per week, but can only find work for twenty hours per week. D. Frank would like to work, but has not looked for work because he believes no jobs are available.
In the long run, firms in monopolistic competition become price takers
Indicate whether the statement is true or false
Macroeconomic equilibrium is best described as a situation in which: a. the slope of the aggregate demand curve equals the slope of the aggregate supply curve. b. quantity demanded exceeds quantity supplied
c. quantity demanded equals quantity supplied at a unique price level. d. quantity supplied exceeds quantity demanded at a unique price level. e. quantity supplied equals quantity demanded at a unique price level.
When the government is the sole depository of foreign currencies and exercises complete control over how these currencies may be used, this
a. is a violation of International Monetary Fund regulations for member countries because it denies the right of market forces to determine exchange rates b. creates equilibrium in the foreign exchange market which would otherwise not occur c. is an example of exchange controls that allow a government to maintain a fixed exchange rate d. is necessary in a floating exchange rate system to keep the market in equilibrium e. stimulates international trade because it eliminates all the uncertainty associated with floating exchange rates