The firm's demand curve in monopolistic competition slopes downward because
a. there are strong barriers to entry in the industry
b. of product differentiation among the goods firms produce
c. only few firms exist in the industry
d. the market demand curve is downward sloping
e. the market demand curve is horizontal
B
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In a Keynesian model, what are the short-run effects on output, the real interest rate, and the real exchange rate, for both the domestic economy and a foreign economy, of a decline in investment?
What will be an ideal response?
The inputs used in the aggregate production function do NOT include which of the following?
A. The number of workers in a country B. Education and skill levels C. Average price levels D. Knowledge
How does the fact that imports vary directly with GDP affect the stability of the domestic economy?
What will be an ideal response?
Refer to Scenario 19.1 below to answer the question(s) that follow. SCENARIO 19.1: An individual earning $60,000 pays $12,000 in taxes. The marginal tax rate on any income earned above $60,000 is 25%. Refer to Scenario 19.1. Suppose this person earns $70,000 and gives a $1,000 tax deductible donation to charity. The donation reduces her tax payment by
A. $200. B. $207. C. $250. D. $1000.