For the monopolistically competitive firm, the demand curve it faces will be steeper the:
A. more easily the good can be substituted.
B. less easily the good can be substituted.
C. more complement goods are available.
D. less complement goods are available.
B. less easily the good can be substituted.
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An increase in consumers' demand for espresso will lead to an increase in ________, while an increase in the number of firms producing espresso will lead to a(n) ________.
A. supply; decrease in supply B. supply; increase in quantity supplied C. quantity supplied; decrease in supply D. quantity supplied; increase in supply
Another term for surplus is
A. excess supply. B. equilibrium demand. C. excess demand. D. equilibrium supply.
If the reserve ratio is 4 percent, the money multiplier is equal to 25.
Answer the following statement true (T) or false (F)
Is the call for protection on the basis of “infant industry” valid?
A. No, because protection has no place in industrial development. B. No, protection is always improper. C. Uncertain, economic theory has no answer to this question. D. Yes, although it can be overstated and abused.