In monopolistic competition, firms do not have to produce innovative products because they have downward-sloping demand curves
Indicate whether the statement is true or false
FALSE
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Suppose that in each of four successive years producers sell more of their product and at lower prices. This could be explained
A. by small annual increases in demand. B. as an exception to the law of supply. C. in terms of a stable supply curve and increasing demand. D. in terms of a stable demand curve and increasing supply.
A weaker dollar would be a good policy if the U.S. government wanted to:
A. increase exports and reduce the trade balance. B. reduce imports and increase the trade balance. C. reduce the trade balance and lower inflation. D. increase the trade balance and lower inflation.
The U.S. government need never default on its debt because
A. it can easily nationalize banks, who own all the debt, and then owe it to itself. B. it can raise the funds it needs to repay by taxation, and it can print money to repay. C. it owes the debt to itself, and it can always ignore a demand for repayment. D. it can simply reduce spending enough to generate funds to repay its debt.
In analyzing the operation of a firm, an economist assumes the firm wants to
A. maximize total profits. B. maximize total revenue. C. maximize total production. D. maximize total sales.