In monopolistic competition, product differentiation gives the firms the power to set their prices
Indicate whether the statement is true or false
TRUE
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After the imposition of the quota, the quantity demanded of TVs is ________ thousand. 
A. 20 B. 80 C. 100 D. 40
Refer to Table 2-14. Does either Ireland or Scotland have an absolute advantage and if so, in what product?
A) Scotland only has an absolute advantage in producing guitars. B) Ireland only has an absolute advantage in producing motorcycles. C) Ireland only has an absolute advantage in producing guitars. D) Scotland has an absolute advantage in producing both products.
A minimum wage law is a:
A. price ceiling. B. price floor. C. customary norm without legal structure or protection. D. quantity restriction.
Which of the following is an example of a contractionary monetary policy?
a. Reduction in the amount of transfer payments made to poor families b. Purchase of U.S. government securities in the open market c. Increase in the discount rate d. Decrease in the required reserve ratio e. Increase in the tax rate