Which set of characteristics below best describes the basic features of monopolistic competition?
A. Easy entry, many firms, and standardized products
B. Barriers to entry, few firms, and differentiated products
C. Easy entry, many firms, and differentiated products
D. Easy entry, few firms, and standardized products
C. Easy entry, many firms, and differentiated products
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According to the Ricardo-Barro effect, government deficits
A) lead to a rise in the equilibrium real interest rate, crowding out investment. B) lead to simultaneous increases in private saving and no effect on the equilibrium real interest rate and investment. C) lead to simultaneous decreases in private saving and decreases in the equilibrium real interest rate and investment. D) lead to a fall in the equilibrium real interest rate and a rise in investment.
If Fred's marginal utility of pizza equals 10 and his marginal utility of salad equals 2, then we know that
A) his indifference curves are convex. B) his indifference curves are L-shaped. C) his indifference curves are linear. D) his indifference curves are downward sloping.