Using the basic supply/demand framework, economic analysis of market structure leads to the conclusion that:
A. oligopoly promotes efficient outcomes, whereas the other market structures are associated with some deadweight loss.
B. monopolistic competition promotes efficient outcomes, whereas the other market structures are associated with some deadweight loss.
C. monopoly promotes efficient outcomes, whereas the other market structures are associated with some deadweight loss.
D. perfect competition promotes efficient outcomes, whereas the other market structures are associated with some deadweight loss.
Answer: D
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What is the equilibrium quantity in this market?
a. 4 units b. 8 units c. 12 units d. 16 units
What is the conclusion that behavioral economists have made about the amount of product variety in the market place?
What will be an ideal response?
In most societies, dollar price acts as the main rationing device. If dollar price weren't the main rationing device, would there still be a need for some rationing device to take its place?
A) No, because with dollar price there would be no scarcity, although shortages would still exist. B) Yes, because there is a need for a rationing device as long as scarcity exists. C) Yes, because there is a need for a rationing device as long as the world's population is so large. D) No, because dollar price creates scarcity and without money price scarcity wouldn't exist. E) none of the above
A downward movement along the investment demand curve would be caused by a(n):
A. increase in the expected rate of return on investment caused by an increase in business confidence. B. decrease in the expected rate of return on investment caused by a decrease in business confidence. C. increase in the rate of interest. D. decrease in the rate of interest.