If there are two gas stations in the town of Smalltown, then the gasoline indust
ID: 1118902 • Letter: I
Question
If there are two gas stations in the town of Smalltown, then the gasoline industry in Smalltown is probably best characterized as
1) perfect competitive
2) monopolistic competition.
3) monopolistic.
4) oligopolistic.
Which of the following would be a normative economic statement?
1)
2)
3)
4)
Both A and C are normative economic statements.
1)
Government has grown too large and should be reduced.2)
There has been an increase in the rate of inflation.3)
Government should be subject to the same rules as all other institutions.4)
Both A and C are normative economic statements.
Explanation / Answer
Q1
Answer
option 4
The few firm market is known as oligopoly or duopoly which is a type of oligopoly.
Q2
Option 1
the normative statement shows a sentence about desirable or not.
the statement shows its more, we can say it is like the inflationary gap where an actual output is above potential output and government should reduce it.