A monopolistic competitor does not earn profits in the long run unless it can successfully differentiate its product in the minds of its consumers
Indicate whether the statement is true or false
TRUE
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If a market is dominated by a few large, interdependent firms, it is said to be a(n)
a. oligopoly b. monopoly c. integrated monopoly d. monopolistically competitive market e. perfectly competitive market
A progressive income tax system is particularly effective as an automatic stabilizer because
A. In a booming economy, taxpayers move into higher tax brackets, which restrains their spending. B. During a recession, it causes the budget deficit to fall. C. It falls more heavily on taxpayers with high MPCs, which stimulates aggregate demand. D. It reduces demand when income falls.
Innovation is
A. the transformation of an invention into something that is useful to humans. B. another term for something new. C. the term for invention when a firm obtains a patent. D. the term for inventions in the electronic and computer industries.
Economic growth may understate changes in standards of living if
A. the growth is accompanied by increasing congestion. B. the types of jobs generated feelings of alienation. C. deflation is taking place. D. leisure time is also increasing.