"One of the defining features of monopolistic competition is product variety." Is the previous statement correct or incorrect?
What will be an ideal response?
The statement is correct. In monopolistic competition firms compete by producing similar but slightly differentiated products.
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What is autarky?
What will be an ideal response?
In the long-run ISLM model and with everything else held constant, the long-run effect of an autonomous increase in investment is to ________ real output and ________ the interest rate
A) increase; increase B) increase; not change C) not change; increase D) not change; decrease
On May 12, 2011, it cost U.S. $1.64 to buy 1 British pound. How many British pounds would U.S. $1 buy?
A. 0.56 B. 0.61 C. 1.64 D. 2.64
Assume the market for DVD movies is initially at equilibrium. A decrease in the price of streamed movies, a substitute for DVD movies, will __________ the equilibrium price and ___________ the equilibrium quantity of DVD movies.
a) increase; increase b) increase; decrease c) decrease; increase d) decrease; decrease