In monopolistic competition if there is profit, there is:
a. a signal for new firms to enter.
b. a motive for existing firms to increase prices.
c. proof that advertising works.
d. a motive for existing firms to decrease prices.
e. product differentiation.
a
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Which of the following increases Money Demand?
a. Lower nominal interest rates. b. Higher nominal interest rates. c. Higher real GDP d. Lower real GDP
The term full employment implies an unemployment rate of:
a. zero b. approximately 5% c. approximately 10% d. 100%
If average product is falling, what is happening to short-run average variable cost?
A. If average productivity is falling, short-run average variable cost is also falling; to say that productivity falls is equivalent to saying that cost falls. B. If average productivity is falling, short-run average variable cost could be rising or falling; it depends on what is happening with marginal productivity. C. Short-run average variable costs are always falling. They are not related to average product. D. If average productivity is falling, short-run average variable cost is rising; to say that productivity falls is equivalent to saying that cost rises.
Capital stock is defined as the retail value that was paid for a firm's productive assets.
Answer the following statement true (T) or false (F)