Why is a firm in a monopolistically competitive industry considered a "mini" monopoly?
a. There are large number of sellers in the market.
b. Each firm in monopolistic competition is a price taker.
c. The product of each firm is unique in some way or the other.
d. Each firm faces a perfectly elastic demand curve.
e. There exists a large number of close substitutes of the products.
c
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If the monetary multiplier is 6, then the reserve requirement must be
A. 0.6. B. 0.167. C. 1.67. D. 0.06.
A tariff is a
A) tax on an exported good or service. B) tax on an imported good or service. C) subsidy on an exported good. D) subsidy on an imported good.
Holding everything else constant, a decrease in the price of GPS systems will result in
A) a decrease in the supply of GPS systems. B) an increase in the quantity of GPS systems demanded. C) an increase in the demand for GPS systems. D) an decrease in the quantity of GPS systems demanded.
The real interest rate can be approximated by
a. adding the nominal interest rate and the inflation rate b. subtracting the nominal interest rate from the inflation rate c. adding last year's nominal interest rate to this year's d. subtracting the inflation rate from the nominal interest rate e. none of the above