Which of the following is a common criticism of advertising?
a. It manipulates consumers’ tastes.
b. It emphasizes product quality.
c. It creates competition between firms.
d. It focuses on what consumers want.
a. It manipulates consumers’ tastes.
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If some firms leave a monopolistically competitive market, the
a. remaining firms will charge a lower price to try to capture the released market share b. remaining firms' cost curves will shift upward and to the right c. remaining firms' demand curves will shift to the left d. market demand curve shifts to the right e. remaining firms will produce at a different point on their ATC curves
Which of the following is true of pure monopoly?
a. Monopoly expands the options available to consumers. b. Monopoly results in allocative inefficiency. c. Profits and losses induce firms to enter and exit from industries. d. Monopoly works well when governments regulate prices.
You have some estimates of national accounts numbers for a closed economy for the coming year. Under one set of expectations, government purchases will be $30 billion, transfer payments will be $10 billion, and taxes will be $45 billion. Under another set of expectations, GDP will be $200 billion, taxes will be $50 billion, transfer payments will be $20 billion, consumption will be $120 million,
and investment will be $40 billion. Based on these numbers in the first case there should be a a. $15 billion surplus, and in the second case a $10 billion surplus. b. $15 billion surplus, and in the second case a $30 billion deficit. c. $5 billion surplus, and in the second case a $10 billion deficit. d. $5 billion surplus, and in the second case a $30 billion deficit.
If S1 moves to S2 and D1 moves to D2, which of the following would happen?
a. P1 would move to P2.
b. P2 would move to P1.
c. Q2 would move to Q1.
d. E1 would be indeterminate.