Which of the following is TRUE about monopolistic competition?
A) One firm serves as the entire industry.
B) A small number of firms serve the entire market.
C) It is competition among many firms producing similar but differentiated products.
D) The pattern of production and trade is difficult to predict.
E) It enjoys no economies of scale.
C
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According to the real business cycle model, a rightward shift in the long-run aggregate supply schedule would be caused by ________
A) a negative supply shock B) an increase in aggregate demand C) a positive supply shock D) a decrease in aggregate demand
When a group of people stand to gain from an action that is not rational for any of the members to undertake individually, it is referred to as a:
A. free-rider problem. B. collective-action problem. C. moral hazard problem. D. societal-wellbeing problem.
The Bureau of Labor Statistics' household survey and establishment survey both yield the same results about total employment
a. True b. False Indicate whether the statement is true or false
Which of the following statements about taxation is TRUE?
A) Increasing taxes will always increase tax revenues. B) Static tax analysis recognizes that an increase in taxation could lead to a decrease in tax revenues. C) Dynamic tax analysis assumes that an increase in taxation will leave the tax base unchanged. D) There is a tax rate at which tax revenues are maximized.