A market is classified as monopolistically competitive when
A) there is a barrier that blocks entry by other firms.
B) a small number of firms compete.
C) many firms produce the same product.
D) many firms produce a slightly differentiated product.
E) there is one firm that sells a good or service with no close substitutes.
D
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Which of the following claims is consistent with the views of mainstream economists?
a. If we increase the rate of inflation from 3 percent to 6 percent, then the rate of unemployment will temporarily fall. b. If we increase the rate of inflation from 3 percent to 6 percent, then the rate of unemployment will temporarily rise. c. If we increase the rate of inflation from 3 percent to 6 percent, then the rate of unemployment will permanently fall. d. If we increase the rate of inflation from 3 percent to 6 percent, then the rate of unemployment will permanently rise.
In the very short-run period,
A. the price elasticity of supply is very elastic. B. the price elasticity of demand is very elastic. C. the cross elasticity of demand is very inelastic. D. the price elasticity of supply is very inelastic.
If the number of unemployed equals 30,000, the number of employed equals 60,000, and the number not in the labor force is 10,000, the labor-force participation rate
A. is 90%. B. is 88.9%. C. is 67%. D. cannot be determined from this information.
Demand-pull inflation and cost-push inflation both lead to a higher price level and lower output.
Answer the following statement true (T) or false (F)