Which of the following productive resources is considered ‘fundamentally different’ from other resources with respect to supply and diminishing returns?

In a monopolistically competitive market,

a. the entry of new firms creates externalities. b. the absence of restrictions on entry by new firms ensures that there will be no deadweight loss. c. there are always too many firms in the market relative to the socially-optimal number of firms. d. firms cannot earn positive economic profits in the short run.

What can we predict about the effect on consumption of an increase in government spending?

A. Consumption will increase by the amount of the government spending. B. Consumption will increase by an amount equal to the MPC times the change in real GDP. C. Consumption will not rise as government spending rises. D. Consumption will increase by an amount equal to the MPC times the change in government spending.