The demand curve for a monopolistically competitive firm is
A) the same as the industry demand curve.
B) more elastic than the demand curve of the perfectly competitive firm.
C) less elastic than the demand curve of the perfectly competitive firm.
D) horizontal.
C
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One of the chief advantages of exchange rate pegging is that ________
A) a country is able to pursue an independent monetary policy over the course of the business cycle B) it can be an effective means of reducing inflation C) the currency can be used to promote export growth D) it allows the monetary authorities to actively respond to the problems of inflation and unemployment
The opportunity cost of a particular activity is the sum of the benefits that could have been received from all foregone activities
a. True b. False
Jack decided to sell his stock of shares when he heard that the economy was heading for a recession. This illustrates the theory of _____
a. absolute advantage b. rational expectations c. adaptive expectations d. sticky wages
The official poverty line in the United States is set
A. at the amount necessary to allow an individual to buy the same market basket of goods that the average urban wage earner can afford. B. equal to one-half the average income in the United States. C. at three times the cost of the Department of Housing's minimum housing allowance. D. at three times the cost of the Department of Agriculture's minimum food budget.