Economists agree that a monopolistically competitive market structure
A) can eliminate any excess capacity if all firms in the industry devote more funds to differentiating their products.
B) lowers consumer utility because consumers pay a price higher than the marginal cost of production.
C) is detrimental to society because it leads to a waste of scarce resources.
D) benefits consumers because firms produce products that appeal to a wide range of consumer tastes.
D
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Which international account is used to record payments for imports, receipts from exports, net interest paid abroad and net transfers?
A) the capital and financial account B) the current account C) the official settlements account D) the trade account
When the price of gasoline rises, some consumers begin riding their bikes more frequently or riding the bus instead of driving their cars. The fact that the CPI does not fully account for such changes in consumer behavior is called
A) increase in quality bias. B) outlet bias. C) substitution bias. D) discrimination bias.
The innovation cycle is regarded as a long-wave cycle and it can last as long as
a. 500 years b. 100 years c. 75 years d. 30 years e. 10 years
Who would be most likely to agree that "People do not always save more as interest rates rise"?
A) a classical economist B) John Maynard Keynes C) an efficiency wage theorist D) a and b E) a, b, and c