Which of the following is NOT a basic feature of a monopolistically competitive industry?
A. Each firm in the industry produces a differentiated product.
B. There is free entry and exit into the industry.
C. Each firm owns a patent on its product.
D. There are many buyers and sellers in the industry.
Answer: C
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Suppose that imports and exports in an industry are $100 million and $200 million, respectively. Will the index of intra-industry trade for this industry rise, fall, or remain unchanged if exports fall to $100 million?
a. It will rise. b. It will fall. c. It will remain unchanged. d. There is not enough information to determine how the index will change.
The smaller the marginal propensity to consume, the
A) flatter the IS curve will be. B) steeper the IS curve will be. C) flatter the LM curve will be. D) steeper the LM curve will be.