When a monopolistically competitive firm advertises, it is attempting to increase
A. The demand and increase the price elasticity of demand for its product.
B. Market demand.
C. The demand and decrease the price elasticity of demand for its product.
D. Long-run profits.
Answer: C
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The marginal propensity to import is larger in Mexico than in the United States. As a result,
A) there is less autonomous investment in Mexico. B) the expenditure multiplier is larger in Mexico. C) the expenditure multiplier is larger in the United States. D) induced expenditure is larger in Mexico. E) there is more autonomous expenditure in Mexico.
If GDP per capita rises by 2% between 2015 and 2016, which of the following is necessarily true?
A) The population has increased, but by less than 2%. B) The population has decreased. C) Real GDP has risen by more than 2%. D) None of the above is necessarily true.
If the paint on your house was eaten away by the fumes from a factory nearby and you hired a lawyer to sue the polluting firm, your legal fees would be considered
A) marginal benefits. B) social costs of the pollution. C) external costs. D) transactions costs.
Based on the information above, the labor force participation rate is
A) 36%. B) 40%. C) 44%. D) 90.1%. E) 66%.