Monopolistically competitive firms face downward-sloping residual demand curves because these firms
A) have relatively few rivals (compared to competition).
B) sell differentiated products.
C) A and/or B.
D) None of the above.
C
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The paradox of planning is that it can:
a. Both create and relieve stress b. Produce anxiety c. Provide economic supply and demand d. Be only a short-term fix
Suppose you observe that the price of movie admissions decline and that the number of people attending movies declines as well. If only the demand curve or the supply curve shifts, this suggests that
A) movies are a normal good and incomes have increased. B) high salaries for Hollywood actors have increased the cost of movie making. C) movie theaters have experienced an increase in their operating costs due to increases in the minimum wage. D) admission prices for other types of entertainment, such as live shows and sporting events, have also declined.
The concept that Mr. Jones is going to enjoy the benefits of police protection even though he no longer pays taxes is called
A) the free-rider problem. B) the negative externality principle. C) the principle of rival consumption. D) the principle of anti-trust.
The subprime mortgage bubble featured ____ leverage, and the technology stock bubble featured ____ leverage.
A. significant; significant B. significant; limited C. limited; significant D. limited; limited