Monopolistically competitive firms advertise to differentiate their product from those of competitors.
Answer the following statement true (T) or false (F)
True
An imperfectly competitive firm typically uses advertising to enhance its own product's image, thereby increasing the size of its captive market (consumers who identify with a particular brand).
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An increase in inflation leads to higher ________
A) output B) spending C) real interest rate D) all of the above E) none of the above
The unemployment rate in the United States:
A. never falls to zero. B. falls to zero during expansions. C. equals zero during booms. D. can be zero in both expansions and recessions.
Exhibit 5-1Use the information below to answer the following question(s). National income accountBillions ofdollars Personal consumption expenditures$900 Personal taxes 180 Government consumption and gross investment 300 Interest income 60 Exports 40 Imports 75 Depreciation 60 Gross investment 200 Refer to Exhibit 5-1. What is this country's gross domestic product?
A. $1,225. B. $1,305. C. $1,365. D. $1,440.
Which of the following is the largest category of federal government expenditures?
A) defense spending B) transfer payments C) interest on the debt D) grants to state and local governments