The administrative burden of regulating price in a monopolistically competitive market is
a. small due to economies of scale.
b. large because price is usually below marginal cost.
c. large because of the large number of firms that produce differentiated products.
d. small because firms produce with excess capacity.
c
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During the Great Depression:
A. overall GDP rose. B. investment increased, but consumption decreased. C. both consumption and investment decreased. D. investment fell, but consumption increased.
Real GDP per person in Westland is $30,000, while real GDP in Eastland is $10,000, Westland's real GDP per person is growing at 3 percent per year and Eastland's real GDP per person is growing at 3 percent per year. If these growth rates persist indefinitely, then:
A. Eastland's real GDP per person will rise until it equals Westland's real GDP per person. B. Eastland's real GDP per person will eventually be greater than Westland's. C. Westland's real GDP per person will always be at least $20,000 greater than Eastland's. D. Eastland's real GDP per person will always be exactly $20,000 less than Westland's.