10. In the long run, a proft-maximizing firm in a monopolistically competitive market operates at(A)
11. Which of the following statements is correct if a country has adopted fixed exchange rateregime?
12. Take a graph with the unemployment rate on the horizontal axis and the infation rate on theverti
13. Which of the following statements is necessarily false;(A) Monetary policy can be conducted thro
14. According to the theory of sticky wages:(A) prices adjust slowly to a decrease in nominal wages.
15. According to the AS-AD model an increase of public investanent(A) might decrease GDP in the shor
17. Assume that the currency-deposit ratio is 32%, the required reserve-deposit ratio is 7%, theexce
18. When the central bank intervenes in the foreign exchange market by purchasing foreign cur-rency,
19. According to the Baumol-Tobin transaction demand model, money demand for transactions(A) depends
20. Which are the three channels by which the Central Bank can reduce money supply?(A) buy governmen
2. Which of the following is unique to a monopolistically competitive firm when compared to anoligop
3. For a firm in a perfectly competitive market, the price of the good is always equal to(A) margina
6. When a firm is able to put idle equipment to use by hiring another worker,(A) variable costs will
8. Suppose that for Emily, DVDs and trips to the movie theater are pertect substitutes. Currently,Em
9. How does a competitive market compare to a monopoly that engagcs in perfect price discrimi-nation