Monopolistic competition, like perfect competition, is a market structure in which firms can easily enter and leave the industry.
a. True
b. False
Indicate whether the statement is true or false
QUESTION 2Assume that a country's government influences the exchange rate through active central bank intervention, with no pre-announced path for the exchange rate. This policy is known as a(n):
a. floating exchange-rate policy.
b. managed floating exchange-rate policy.
c. fixed exchange-rate policy.
d. crawling-peg exchange-rate policy.
e. interventionist exchange-rate policy.
QUESTION 3The demand curve faced by a dominant firm in an oligopoly model is the difference between the market demand and the supply that the fringe will produce at each price.
Indicate whether the statement is true or false
QUESTION 4The efficiency loss that occurs when a market is monopolized is known as:
a. a deadweight loss.
b. an inventory loss.
c. an economic loss.
d. a non-economic loss.
e. a capital loss.
QUESTION 5Monopolistic competition is a market structure characterized by many small firms selling a homogeneous product.
a. True
b. False
Indicate whether the statement is true or false
QUESTION 6What is a currency board?
a. A fixed exchange rate that, by law, exchanges domestic currency for a specified foreign currency at a fixed exchange rate.
b. A floating exchange rate.
c. A managed floating exchange-rate policy that the government adjusts periodically according to some economic indicator.
d. A laissez-faire exchange-rate policy.
e. An interventionist exchange-rate policy.
QUESTION 7The smaller U.S. mainframe computer and peripheral equipment manufacturers of the 1960s (the Bunch) were perfect competitors, since they produced homogenous products and had little control over the market price.
Indicate whether the statement is true or false
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