An increase in the price of product X causes a decrease in the quantity demanded for product X. One basic explanation for this is:
A. The law of increasing opportunity cost
B. The price-elasticity effect
C. The law of supply
D. The law of diminishing marginal utility
D. The law of diminishing marginal utility
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In the New Keynesian open economy model, if the exchange rate is fixed
A) fiscal policy and monetary policy are powerless. B) fiscal policy is an effective stabilization tool. C) a change in current total factor productivity increases output. D) monetary policy is an effective stabilization tool.
The infant industry argument for protectionism is to block imports ______________ to give the infant industry time to mature before it starts competing on equal terms in the global economy.
a. for a limited time b. for a long time c. permanently d. never
The opposite of the bandwagon effect is:
A. a network externality, positive or negative. B. a positive network externality. C. the substitution effect. D. the snob effect.
The perfect competitor's demand and marginal revenue curves ______ identical; the monopolist's demand and marginal revenue curves _______ identical.
Fill in the blank(s) with the appropriate word(s).