Deadweight loss measures the loss in society's welfare that occurs because a monopolist can earn profits without the concern of new firms entering its industry

a. True
b. False
Indicate whether the statement is true or false


False

Economics

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Explain why a exchange rate-based stabilization plan may result in a real appreciation?

What will be an ideal response?

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We are assuming that returns to scale are

A) scalable. B) constant. C) increasing. D) zero.

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When a country is a net borrower from abroad, they will have a(n) _____________ account deficit.

a. current b. trade c. cash d. overall

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If purchasing-power parity holds, a dollar will buy

a. more goods in foreign countries than in the United States. b. as many goods in foreign countries as it does in the United States. c. fewer goods in foreign countries than it does in the United States. d. None of the above is implied by purchasing-power parity.

Economics