As new firms enter a monopolistically competitive market, profits of existing firms ____ and product diversity in the market ____.
a. decline; decreases
b. rise; decreases
c. rise; increases
d. decline; increases
QUESTION 2No currency ever appreciated or depreciated under the Bretton Woods system as it was based on a system of fixed exchange rates.
a. True
b. False
Indicate whether the statement is true or false
QUESTION 3Which of the following facts about competitive ideas is true?
a. A successful competitive idea should be big in terms of investment.
b. A competitive idea is usually built on a foundation of other ideas.
c. A competitive idea should necessarily be scientific.
d. A successful competitive idea must be original.
QUESTION 4In monopolistically competitive markets, economic losses ____, and ____ shifts the demand curve of the remaining firms to the ____.
a. signal some remaining firms to exit; exit; right
b. signal some remaining firms to exit; exit; left
c. signal new firms to enter; entry; left
d. signal new firms to enter; entry; right
QUESTION 5The exchange-rate arrangement that emerged from the Bretton Woods conference is often called a managed float standard.
a. True
b. False
Indicate whether the statement is true or false
QUESTION 6Food retailers usually do not compete on which of the following factors?
a. Price
b. Variety
c. Location
d. Packaging
QUESTION 7In monopolistically competitive markets, economic profits ____, and ____ shifts the demand curve of the remaining firms to the ____.
a. signal some remaining firms to exit; exit; right
b. signal some remaining firms to exit; exit; left
c. signal new firms to enter; entry; left
d. signal new firms to enter; entry; right
QUESTION 8The gold standard ended in the 1970s because the gold supplies failed to keep pace with the increase in money supplies required for industrialization and rapid economic growth witnessed in this era.
a. True
b. False
Indicate whether the statement is true or false
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