In a monopolistically competitive market,
a. entry by new firms is impeded by barriers to entry; thus, the number of firms in the market is never ideal.
b. entry by new firms is impeded by barriers to entry, but the number of firms in the market is nevertheless always ideal.
c. free entry ensures that the number of firms in the market is ideal.
d. there may be too few or too many firms in the market, despite free entry.
Ans: d. there may be too few or too many firms in the market, despite free entry.
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Refer to the figure above. What is the equilibrium quantity of credit when the credit demand curve is CD2 and the credit supply curve is CS1?
A) $40 B) $50 C) $30 D) $20
As a result of international trade,
a. the gain to producers in the importing country exceeds the loss to consumers in the importing country b. the loss to producers in the importing country is less than the gain to consumers in the importing country caused by a decrease in price c. the loss to producers in the importing country exceeds the gain to consumers in the importing country caused by an increase in price d. the loss to producers in the importing country is equal to the gain to consumers in the importing country because price increases and equilibrium quantity decreases e. the loss to producers in the importing country is equal to the gain to consumers in the importing country because price decreases and equilibrium quantity increases
For much of the history of aid, ____________ has been a driving force in decisions about how much to give in foreign aid.
A. the finance gap of receiving countries B. the opportunity cost of investing in developing nations C. the interest rate in the home country D. political strategy
A banking panic is an episode in which:
A. depositors, afraid of increasing interest rates, attempt to engage in discount-window borrowing at the Federal Reserve. B. depositors, spurred by news or rumors of possible bankruptcy of one bank, rush to withdraw deposits from the banking system. C. commercial banks, concerned about high interest rates, rush to borrow at the Federal Reserve discount rate. D. commercial banks, fearing Federal Reserve sanctions, unwillingly participate in open-market operations.