Which of the following is NOT a characteristic of a monopolistically competitive market?
A. There are many firms.
B. Firms sell products that are similar but not identical.
C. Firms must take the market price as given.
D. There are no artificial barriers to entry.
Answer: C
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Use the figure below to answer the following question.
The figure above shows three supply curves for wheat. Which of the following would cause the quantity of wheat supplied to increase from point a to point b?
A. a tax on wheat production B. an increase in the price of wheat C. a decrease in the price of wheat D. a subsidy for wheat production
Optimal decisions are made
A) if information about prices and marginal utilities is known. B) in the marketplace. C) at the margin. D) when marginal utility is minimized.
The big-push theory argues that coordination failures may arise because of
a. pecuniary externalities. b. technological externalities. c. lack of human capital. d. all of the above.
The concept of progressive, proportional, and regressive taxation is positive in nature
a. True b. False