All of the following are assumptions of the classical model EXCEPT
A. pure competition.
B. self-interest of economic actors.
C. inflexible wages.
D. absence of money illusion.
Answer: C
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Which of the following compete to determine whether the current account improves or worsens following a rise in the real exchange rate?
A) appreciation and depreciation B) crowding Out effect and producers effect C) volume effect and value effect D) volume effect and inflation E) producers effect and value effect
A college student is thinking about running an ice-cream truck over the summer. Which of the following would likely be included in the total cost of the business?
A. The cost of ice cream cones B. The cost of the truck C. The opportunity cost of the student’s time D. All of these would be included in total cost.
How does advertising influence the demand for goods and the shape of the demand curve?
What will be an ideal response?
Monopolistically competitive firms offer consumers more variety than perfectly competitive firms.
Answer the following statement true (T) or false (F)