Monopolistic competition leads to ___________ prices, but ___________ product variety.
Fill in the blank(s) with the appropriate word(s).
higher; more
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What is the main difficulty facing cost-benefit analysts when they attempt to evaluate the worthiness of proposed public projects?
When the equilibrium price of a product is present
a. neither consumers nor producers will benefit from the exchanges. b. the value of the products to the consumers will exceed the costs of the resources required for their production. c. the consumers will benefit from the exchanges, but the producers will experience losses. d. the producers will profit from the exchanges at the expense of consumers.
Which of the following is a reason why aggregate supply decreased following the housing bubble collapse?
A. Government tax rates were altered as a response to change in aggregate output. B. People stopped investing in homes. C. Businesses could not access credit to carry out their daily operations. D. Consumption decreased.
A beautiful garden that increases the value of the homes in the neighborhood is considered:
A. an inferior good. B. a positive externality. C. a negative externality. D. a normal good.