Although monopolistically competitive markets offer consumers a wide variety of differentiated products, there may still be insufficient variety if
a. there are large fixed costs in the market.
b. there are no barriers to entry in the market.
c. the business-stealing externality is present in the market.
d. the government does not impose regulations on the market.
Answer: a. there are large fixed costs in the market.
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The measure of the cost of a standard basket of goods and services in any period relative to the cost of the same basket of goods and services in the base year is called the:
A. consumer price index. B. consumption cost calculator. C. consumption production index. D. consumer production index.
Unlike nontariff barriers, tariffs
A. are less transparent B. are more transparent C. are neutral
When the government's outlays equal its tax revenue, the budget
A) has a deficit and the national debt is increasing. B) has a deficit and the national debt is decreasing. C) is balanced and the national debt is not changing. D) has a surplus and the national debt is decreasing. E) has a surplus and the national debt is increasing.
Refer to the scenario above. The total value in your account, at the end of a year, is equal to:
A) $520. B) $525. C) $550.50. D) $572.