There are several types of barriers to entry that can create a monopoly. Which of the following barriers is the result of government action?
A) network externalities
B) public franchise
C) economies of scale
D) control of a key resource
Answer: B
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Which of the following would cause movement along an aggregate demand curve, all other things being held constant?
a. a price level hike b. a wage level hike c. a change in disposable income d. a change in consumer confidence
Crowding out is reduction in:
A. corporate borrowing that is caused by an increase in private borrowing. B. private borrowing that is caused by an increase in government borrowing. C. private borrowing that is caused by an increase in corporate borrowing. D. government borrowing that is caused by an increase in private borrowing.
In the simple circular flow model, the funds received by a carmaker when it sells a car goes to
A. the owners of all of the resources used to make the car. B. the owners of firms who sold materials to the carmaker, and the rest stays with the firm. C. only the owners of the carmaker. D. the workers who helped build the car.
If the government used the revenue from the excise tax on cigarettes to fund research on lung cancer treatment programs, this would be an example of
A. a benefits-received tax. B. an ability-to-pay tax. C. a vertical equity tax. D. a user fee.