Firms in a monopolistically competitive market face ________ demand curves and earn ________ economic profits in the long run
A) downward sloping; zero
B) downward sloping; positive
C) horizontal; zero
D) horizontal; negative
A
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The rental price of capital is the:
A. interest paid on loans. B. equilibrium wage. C. value of the expected flow of income gained from ownership. D. amount producers pay to use a factor of production.
To stabilize interest rates, the Federal Reserve will respond to an increase in money demand by
a. buying government bonds, which decreases the supply of money. b. selling government bonds, which increases the supply of money. c. buying government bonds, which increases the supply of money. d. selling government bonds, which decreases the supply of money.
According to purchasing-power parity, if a basket of goods costs $100 in the U.S. and the same basket costs 800 pesos in Argentina, then what is the nominal exchange rate?
a. 8 pesos per dollar b. 1 peso per dollar c. 1/8 peso per dollar d. none of the above is correct
Using Figure 1.4, we know the production of 6 units of soda and 2 units of pizza is 
A. impossible because we have the resources but do not have the technology. B. impossible because we have the technology but do not have the resources. C. possible, but there would be unemployment. D. possible, but only if all resources were fully employed.