If an economy produces 100 pencils and 100 pens, and pencils sell for twice as much as pens, ________.
A. nothing can be said about the relative importance of pens and pencils in the economy
B. pencils are weighted as equally important in the economy as pens
C. pencils are weighted as twice as important in the economy compared to pens
D. pens are weighted as twice as important in the economy compared to pencils
Answer: C
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A monopolistically competitive firm's marginal revenue curve
A. is downward-sloping and coincides with the demand curve. B. does not exist because the firm is a "price maker." C. is downward-sloping and lies below the demand curve. D. coincides with the demand curve and is parallel to the horizontal axis.
Why are firms in monopolistic competition unable to make an economic profit in the long run?
What will be an ideal response?
The federal agency that regulates the New York Stock Exchange is the
a. Securities and Exchange Commission b. Department of Justice c. Department of Commerce d. Federal Reserve Board e. Department of the Treasury
Which of the following ideas is illustrated by the production possibilities curve [PPC]?
a. There are no limits on the total production feasible in an economy. b. An economy need not decrease the production of one commodity to increase the production of another. c. It is possible to satisfy unlimited wants in an economy through proper investment in research and development. d. When an economy chooses to produce a combination of goods and services, other combinations of goods and services are sacrificed. e. An economy can specialize in the production of only one good.