What are the four types of industry structures? Compare and contrast them with the number of firms in the industry, whether firms produce homogeneous or heterogeneous products, whether there are economic profits in long-run equilibrium, and how frequently the model appears in the real world
The four types are perfect competition (many firms, homogeneous products, zero economic profits in long-run equilibrium, rare-or nonexistent-in the real world), monopolistic competition (many firms, heterogeneous products, zero economic profits in long-run, very common in the real world), oligopoly (few firms, homogeneous or heterogeneous products, zero or positive economic profits in the long-run, very common in the real world), and monopoly (only one firm, differentiated product, positive long-run economic profits, relatively uncommon in the real world, but it depends on the definition of the product and the market).
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After an NFL team wins a Super Bowl the next year the tickets are much harder to find and more expensive. This is caused by a(n)
A. decrease in demand but the supply remaining the same. B. increase in demand but the supply remaining the same. C. increase in supply but the demand remaining the same. D. decrease in supply but the demand remaining the same.
Which of the following is an example of a public good?
A) an apple B) a street light C) ketchup D) a car
Which of the following would increase aggregate demand?
a. A deficit in the government budget b. An increase in taxes c. An increase in government borrowing d. A surplus in the government budget e. A decrease in government spending
For an economy, aggregate demand equals:
a. consumption plus investment plus government spending plus exports. b. consumption plus investment plus government spending plus (exports minus imports). c. consumption plus investment plus (taxes minus transfers) plus (exports minus imports). d. consumption plus investment plus government spending plus net exports (imports minus exports).