Identify an example of a stock variable.
a. The growth in investment in an economy
b. The change in the price level in an economy over the years
c. The number of unemployed people in an economy in a particular year
d. The increase in the money supply in an economy
e. The fall in consumer spending during two consecutive years
Question 2
Product differentiation:
a. refers to the attempt of firms to make their products look like those of the other firms in the industry.
b. refers to the attempt of firms to make real or apparent differences in essentially substitutable products look different in the minds of the consumers.
c. refers to the advantage big firms have in research and development.
d. is a common characteristic of a perfectly competitive market structure.
e. is only employed in a monopoly market structure.
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