Deflation is a situation in which the:
A. prices of most goods and services are rising over time.
B. quantity of goods and services produced is increasing over time.
C. prices of most goods and services are falling over time.
D. quantity of goods and services produced is decreasing over time.
Answer: C
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The collection of laws, regulatory measures, and actions concerning a particular topic that originate with some body of government is called
A) fiscal policy. B) public policy. C) private policy. D) antitrust policy.
Which one of the following statements is TRUE for BOTH perfect competition and monopolistic competition?
A) Each type of firm faces a downward sloping demand curve. B) Each type of firm produces a homogeneous product. C) In the long run, firms in both industries make zero economic profit. D) Each type of firm competes on product quality and price.