Which of the following statements is not correct?
a. Monopolistic competition is similar to monopoly because in each market structure the firm can charge a price above marginal costs.
b. Monopolistic competition is similar to perfect competition because both market structures are characterized by free entry.
c. Monopolistic competition is similar to oligopoly because both market structures are characterized by barriers to entry.
d. Monopolistic competition is similar to perfect competition because both market structures are characterized by many sellers.
c
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Based on recent research, which of the following is the most likely cause of the reduction in the rate of technological progress?
A) measurement error B) the increase in the size of the service sector C) a reduction in R&D spending D) a reduction in the fertility of research E) all of the above
Which of the following is true about a liquidity trap situation:
a. Quantitative easing might be a more effective strategy to stimulate the economy than buying short term government securities. b. Quantitative easing may be able to affect long term interest rates even when the Fed is unable to appreciably lower short term interest rates. c. The Fed cannot easily reduce the fed funds interest rate. d. All of the above are true.