The graph below shows the Chamberlin model. One would expect the demand curve facing a monopolistically competitive firm to be 
A. more elastic than a perfectly competitive firm in the same industry.
B. as elastic as a monopoly in the same industry.
C. more elastic than a monopoly in the same industry.
D. less elastic than a monopoly in the same industry.
Answer: C
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In the above figure, if no government intervention occurs, at the unregulated competitive market equilibrium, the marginal cost of the externality is ________ per unit
A) $3 B) $4 C) $6 D) $7
Suppose the Asian financial crisis decreased U.S. exports. In the aggregate demand/aggregate supply model, this would be represented as
A) a shift to the right of aggregate supply, which would result in more production for the U.S. economy. B) a shift to the left of aggregate supply, which would result in less production for the U.S. economy. C) a shift to the right of aggregate demand, leading to more spending and production in the U.S. economy. D) a shift to the left of aggregate demand, leading to less spending and production in the U.S. economy.
Assuming no government or foreign sector, the formula for the multiplier is
A. 1 - MPC. B. 1/MPS. C. 1/MPC. D. 1/(1 + MPC).
Refer to the information provided in Figure 1.3 below to answer the question(s) that follow.
Figure 1.3Refer to Figure 1.3. The slope of the line between Points D and C is
A. -3. B. -0.33. C. 0.33. D. 3.