The reason why firms in perfect competition do not advertise is because
a. their demand curves are all downward sloping and if they sell more it would have to be at a lower price
b. they differentiate themselves, as with milk
c. they are typically small in size and cannot produce for a wider market
d. there is no entry into the industry
e. there is no product differentiation among the goods produced
E
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The primary liabilities of depository institutions are
A) premiums from policies. B) shares. C) deposits. D) bonds.
What is the most likely result when the price of a good with elastic demand is raised by 10 percent?
(A) The quantity sold will decrease by 15 percent. (B) The quantity sold will increase by 10 percent. (C) The quantity sold will decrease by 10 percent. (D) The quantity sold will decrease by 5 percent.
Monetary policy has medium-run effects on which of the following?
A) the level of output but not its composition B) both the level and composition of output C) only the price level D) the level of output AND the price level E) none of the above
If the MPS is 0.4 and t is 0.1, then the tax multiplier is about -1.36.
Answer the following statement true (T) or false (F)