Which of the following examples reflects monopolistic competition?
a. Pineapple agriculture has just enough farms to meet society’s needs efficiently.
b. The ski resort business has too many resorts to meet society’s needs efficiently.
c. Tea agriculture does not have enough farms to meet society’s needs efficiently.
d. The tourism industry fluctuates between too many and too few tours to meet society’s needs efficiently.
b. The ski resort business has too many resorts to meet society’s needs efficiently.
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The idea that the production function exhibits _______implies that ________
A) increasing returns; output should increase steadily as technology grows B) constant returns; each additional unit of labor employed generates an increasing amount of real GDP C) diminishing returns; the Lucas Wedge increases at output increases D) increasing returns; potential GDP is always increasing E) diminishing returns; each additional unit of labor employed generates an ever-decreasing amount of real GDP
Which of the following statements is true?
A) Countries tend to trade extensively with their neighbors. B) The United States is an important trading partner for many countries. C) The largest amount of international trade occurs between industrialized countries. D) All of the above are true.
Suppose there are 200 firms in a perfectly competitive market and each maximizes profit at 120 units of output when market price is $5.00 per unit. One of the points on the market supply curve must be at:
A. Price = $1,000 and Quantity supplied = 320. B. Price = $5 and Quantity supplied = 24,000. C. Price = $1,000 and Quantity supplied = 24,000. D. Price = $5 and Quantity supplied = 320.
The Consumer Price Index basket contains
What will be an ideal response?