Which of the following statements is true?
A) A monopolist's product often has close substitutes.
B) Firms under perfect competition produce differentiated products.
C) Firms under monopolistic competition produce identical products.
D) Firms under oligopoly produce either identical or differentiated products.
D
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GDP tends to underestimate the productive activity in the economy because it excludes the value of output from ________.
A. the consumption of fixed capital B. intermediate goods C. public transfer payments to households D. the underground economy
A firm dumps dioxin in a river, thereby severely polluting the river. The cost of the water pollution is i. zero for the firm. ii. an external cost. iii. part of the marginal social cost
A) i only B) ii only C) iii only D) ii and iii E) i, ii, and iii
Does economic growth result from increases in aggregate demand, short-run aggregate supply, or long-run aggregate supply?
What will be an ideal response?
Which of the following describes a situation in which demand must be elastic?
a. Total revenue increases by 15 percent when the price of corn dogs rises by 15 percent. b. Total revenue increases by less than 15 percent when the price of corn dogs rises by 15 percent. c. Total revenue decreases by more than 15 percent when the price of corn dogs rises by 15 percent. d. Total revenue increases by $15 when the price of corn dogs rises by $15. e. Total revenue increases by more than $15 when the price of corn dogs rises by $15.