The base year for a price index is the year_____
a. in which prices were lowest
b. in which prices were highest
c. in which real output was the largest
d. in which prices were stable
e. that serves as a reference point
e
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Which of the following statements about product development in monopolistic competition is correct?
i. Firms in monopolistic competition undertake too much product development for efficiency. ii. Firms in monopolistic competition undertake too little product development for efficiency. iii. Product development might allow the firm to temporarily earn an economic profit. A) i only B) ii only C) ii and iii D) i and iii E) iii only
Among the impediments to the international mobility of capital are
a. restrictions on foreign ownership. b. fear of nationalization or political instability. c. fluctuations in exchange rates. d. All of the above are correct.
The figure below shows free public schooling leading to less education.
A. True
B. False
C. Uncertain
Which of the following is likely to occur as the result of the law of diminishing marginal utility?
A) Petra's utility from her second apple was less than her satisfaction from her first orange. B) Hudson enjoyed his second slice of pizza more than his first. C) Sabine's utility from her first granola bar is greater than Rachel's utility from her second granola bar. D) Wesley enjoyed his second bottle of iced tea less than his first bottle, other things constant.