Consumer Preference for Foreign Goods and Services Generally Has a _______

question 93

Multiple Choice

Consumer preference for foreign goods and services generally has a _______ relationship with aggregate expenditure.

• A) negative
• B) positive
• C) skewed
• D) constant

---

Definitions:

Pure Monopolist

A market scenario where a single firm is the sole provider of a product or service, without any close substitutes, giving the firm significant market power to influence prices.

Elastic

Describes a situation in which the demand for a product is sensitive to price changes.

Excess Capacity

Plant resources that are underused when imperfectly competitive firms produce less output than that associated with achieving minimum average total cost.

Monopolistic Competition

An economic model describing a market structure where many companies sell products that are similar but not identical, allowing for significant control over prices and product differentiation.