B. An oligopoly C. A monopolistic competition D. A perfect competition
15) Investing in R & D is more likely to occur in markets where A. firms have monopoly power protected by regulatory barriers B. markets are closely competitive markets with close to zero economic profits C. markets are oligopoly markets with strong collusion agreements D. markets are monopolistic competitive markets
16) All economies of scale are achieved at the minimum of A. average total cost B. total cost C. average variable cost D. average fixed cost
17) Inflation is undesirable because it A. arbitrarily redistributes real income and wealth B. invariably leads to hyperinflation C. usually is accompanied by declining real GDP D. reduces everyone’ s standard of living in the same pro portion
18) An economy’ s aggregate demand curve shifts leftward or rightward by more than changes in initial spending because of the A. net export effect B. wealth effect C. real-balances effect D. multiplier effect
19) Suppose productivity rises in a particular economy, but wages stay the same. Other things equal, A. the demand curve will shift leftward B. the supply curve will shift rightward C. the supply curve will shift leftward D. expenditures curve will shift rightward