Which of the following is a TRUE statement about a monopoly?
A) A monopoly does not necessarily earn positive economic profits.
B) A monopoly must earn an above-normal profit to stay in business.
C) As long as there are barriers to entry, a monopoly can always find some price-output combination that generates positive economic profits.
D) As long as the demand curve slopes down, a monopoly can always find some price-output combination that generates positive economic profits.
Answer: A
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Which of the following factors changes saving supply and hence shifts the supply of loanable funds curve?
i. disposable income ii. wealth iii. expected profit A) i only B) ii only C) iii only D) i and ii E) i, ii, and iii
A major disadvantage of a corporation is
a. its weakness at raising funds. b. its inability to limit the financial liability of the owners. c. the double taxation of its profits. d. its lack of continuity in the event of a stockholder’s death.
If an employer calls an applicant's prior employer to inquire about their work ethic, this is an example of ________.
A) the principal-agent problem B) screening C) self-revelation D) certification
A comparative advantage in the production of coal is held by
A. Australia.
B. the United States.
C. both countries.
D. neither country.