Answer the following statement true (T) or false (F)
1) Monopolistically competitive sellers realize economic profits in the long run because entry
barriers are significant.
2) Monopolistically competitive sellers produce efficiently because they obtain only normal profits
in the long run.
3) The oligopolist's kinked-demand curve is highly elastic below and highly inelastic above the
going product price.
4) The oligopolist's kinked-demand curve is highly elastic below and highly inelastic above the
going product price.
1) F
2) F
3) F
4) F
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In its original role as lender of last resort, the Fed was supposed to: a. provide mortgage money for the poor
b. keep the money supply from drying up during economic panics. c. lend money to people in localities not served by commercial banks. d. lend money to developing nations whose own central banks had failed.
Josh runs a landscaping business in Vermont and decides to hire two people in India to maintain his bookkeeping for him electronically. Josh can pay them much less than he would pay a bookkeeper in the U.S., and the workers enjoy a higher quality of life in India thanks to their jobs with Josh's company. Josh's actions are an example of:
A. exporting. B. foreign direct investment. C. importing. D. foreign portfolio investment.
Ceteris paribus, if Canadians decide they want to eat more U.S.-grown soybeans, this causes the ________ U.S. currency to ________.
A. demand for; increase B. supply of; increase C. demand for; decrease D. supply of; decrease
The long-run aggregate supply curve slope is horizontal.
Answer the following statement true (T) or false (F)