Which of the following is not a criticism of monopolies?
a. They restrict output.
b. They set price above the perfectly competitive level.
c. They tend to be less innovative than firms in a competitive market.
d. They exert a disproportionate amount of political influence.
e. They reduce allocative efficiency through perfect price discrimination.
E
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The above table has the private demand for loanable funds and the private supply of loanable funds schedules
If the government budget surplus is $200 billion, and there is no Ricardo-Barro effect, the equilibrium real interest rate is ________ and the equilibrium quantity of loanable funds is ________. A) 8 percent; $700 billion B) 4 percent; $700 billion C) 4 percent; $500 billion D) 8 percent, $500 billion E) 6 percent; $600 billion
A textile manufacturing unit faces low productivity due to shirking by workers. Which of the following is a possible solution to increase productivity and retain employees?
A) The provision of a lower real wage B) The provision of a lower nominal wage C) The provision of minimum wages D) The provision of efficiency wages
As perfectly competitive firms leave a market because they are incurring an economic loss, the price of the good ________ and the economic loss of each remaining firm ________
A) rises; increases B) rises; decreases C) falls; increases D) falls; decreases
Monetarists argue that stability in the economy is maintained by fluctuations in
A) velocity. B) money demand. C) money supply. D) the price level.