The market structure called monopolistic competition is named using both monopoly and perfect competition. Why?
a. There are few firms in the market all producing identical products.
b. There is just one firm whose product can be easily differentiated.
c. There are a huge number of firms selling identical products at the same price.
d. There are many firms with easy entry and exit but each firm sells a unique product.
e. Firms spend very little on advertising and promotion and thus are price takers.
d
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Table 11-1 Y = C + I + G C = 500 + 0.8(Y?T) I = 300 G = 700 T = 0.25Y Refer to Table 11-1. What is the level of consumption in this model?
A. 2,950 B. 2,750 C. 2,550 D. 2,350 E. 2,150
According to the liquidity premium theory of the term structure
A) because buyers of bonds may prefer bonds of one maturity over another, interest rates on bonds of different maturities do not move together over time. B) the interest rate on long-term bonds will equal an average of short-term interest rates that people expect to occur over the life of the long-term bonds plus a term premium. C) because of the positive term premium, the yield curve will not be observed to be downward sloping. D) the interest rate for each maturity bond is determined by supply and demand for that maturity bond.
Screening is when someone takes action to:
A. reveal one's own private information. B. find out the opportunity cost of acquiring more information. C. reveal private information about someone else. D. None of these statements is true.
The exchange rate is
a. another term for "interest rate." b. another term for "growth rate." c. the rate at which goods trade for one another across international borders. d. the price of one currency in terms of another currency.