Which of the following is characteristic of monopolistically competitive industries?
a. Product differentiation
b. A substantial likelihood of collusion.
c. Relatively small market shares of each producer.
d. Both (a) and (c) are characteristics of monopolistically competitive industries.
d
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An increase in the nominal interest rate creates a ________ the money demand curve, and an increase in real GDP creates a ________ the money demand curve
A) movement down along; leftward shift of B) rightward shift of; movement up along C) movement up along; rightward shift of D) leftward shift of; rightward shift of
According to the liquidity premium theory, the yield curve normally has a positive slope because
A) short-term interest rates are expected to rise. B) term premiums rise as the time to maturity increases. C) risk premiums rise over time. D) long-term bonds are more liquid than short-term bonds.
The above figure shows the market for rice in Japan. SDomestic represents the domestic supply curve, and Sworld represents the world supply curve. The smallest tariff necessary to completely eliminate imported rice is
A) $1 per unit. B) $25 per unit. C) $50 per unit. D) Not enough information.
The tax base is
A) the minimum amount of tax revenue that government must collect each year. B) the maximum amount of tax revenue that government must collect each year. C) the sum of all incomes earned in the United States. D) the value of all goods, services, incomes, or wealth subject to taxation.