Although there are certain inefficiencies associated with monopolistic competition, society receives a benefit from monopolistic competition in the form of product variety
a. True
b. False
Indicate whether the statement is true or false
True
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The supply of product X is perfectly inelastic if the price of X increases by ________ and, as a result of the price change, the quantity supplied ________
A. 7%; increases by 5%. B. 10%; stays the same. C. 8%; increases by 8%. D. 5%; increases by 7%.
The recession of 2007-2009 would most likely be represented in a production possibilities frontier graph by
A) a point on the frontier. B) a point inside the frontier. C) a point outside the frontier. D) an intercept on either the vertical or the horizontal axis.
A lobbyist for the coal industry asks Congress to limit environmental constraints on coal-burning plants. This is an example of
a. the median-voter model b. rent seeking c. perfect competition d. monopoly e. public-interest legislation
Which type of unemployment is most likely to help an economy become more efficient?
a. Cyclical unemployment b. Voluntary unemployment c. Seasonal unemployment d. Frictional unemployment e. Underemployment