Advertising by firms in monopolistic competition
A) provides consumers with no useful information.
B) does not occur.
C) can persuade customers that product differentiation exists.
D) wastes resources because the entry of rivals forces firms to be price takers.
C
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Assume a closed economy with fixed taxes and the marginal propensity to consume is equal to 0.9. What is the government spending multiplier?
A) 10 B) 9 C) 5 D) 1
What are the strengths and weaknesses of the negative income tax (NIT) as an alternative to traditional welfare programs?
Without the stockholders' limited liability, the risk from the use of leverage would:
A. still be the same. B. be significantly greater. C. be significantly less. D. be irrelevant.
Use the U.S. current account balance and international investment position to explain the relationship between the current account balance and the international investment position
What will be an ideal response?