Which market model is characterized by many firms, differentiated products, and relatively easy entry?
A. Pure competition
B. Monopolistic competition
C. Pure monopoly
D. Oligopoly
Answer: B
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According to Arrow's impossibility theorem, all voting systems contain some inherent drawback that may prevent them from accurately capturing the preferences of the electorate in all circumstances
Indicate whether the statement is true or false
Between 1980 and 2014, income inequality in the United States has increased in part due to expanding international trade. How does expanding international trade contribute to income inequality?
A) It reduces the cost of producing goods and therefore lowers the value of labor's services. B) It allows producers to exploit workers and reduce the wages they are willing to pay workers. C) It increases the demand for a wide array of products which in turn increases prices beyond the reach of average-income individuals. D) Domestic firms can now hire low-skilled workers anywhere in the world, putting U.S. workers in competition with foreign workers. This has caused the wages of unskilled workers to be depressed relative to the wages of other workers.
Assume that Burger King employees work in an air-conditioned environment while McDonalds employees do not. Other things equal, you would expect wages to be ____ in Burger King because ____.
a. higher; Burger King is a more prestigious place to work b. higher; Burger King employees are more productive c. lower; McDonald's employees are more productive d. lower; Burger King has more favorable working conditions
The PPI is the
A) price parity index. B) prime producer index. C) producer price index. D) production performance indicator.