A contestable market is one where:
A. there is a threat of entry.
B. there are no firms that threaten to enter the market.
C. firms already in the market cannot leave the market.
D. only one firm at a time can serve the market.
Answer: A
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A fiduciary monetary system is dependent on
A) acceptability and predictability of value. B) precious metals backing fiat money. C) Congressional monetary support. D) a negative inflation rate.
An increase in the price level might cause:
A. a decrease in the quantity of aggregate demand because of the substitution effect. B. a decrease in the quantity of aggregate demand because of the interest rate effect. C. an increase in the quantity of aggregate demand because of the multiplier effect. D. an increase in the quantity of aggregate demand because of the money wealth effect.
A curve that is derived by summing horizontally individual supply curves is called:
a. aggregate demand. b. aggregate supply. c. market demand. d. market supply.
Suppose consumers save 8 percent of their incomes. If the government collects 4 dollar in taxes from each taxpayer and invested it in infrastructure, total social investment will ________ per taxpayer.
A. increase by $ 4.32 B. increase by $3.68 C. increase by 32 cents D. decrease by 64 cents