One possible benefit of a monopoly is:
a. a more efficient allocation of resources; only one firm is needed to supply quantity demanded.
b. greater incentives for research due to long-run positive economic profits.
c. the government is better able to ensure that it follows laws and guidelines because there is only one firm to monitor.
d. goods and services are provided at a lower price than under perfect competition because of a monopoly's decreasing average cost curve.
b
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In deciding on how to spend their resources, consumers try to
A. maximize expenditures. B. choose the combination of goods that yield the highest level of personal satisfaction. C. choose the combination of goods that costs the least. D. maximize profit.
Tax incidence is:
A. the difference between what the buyers pay and what the sellers receive in a market where taxes are present. B. the relative tax burden borne by buyers and sellers. C. the generated revenue that comes from taxes in markets. D. the difference between the tax revenue generated and the value of deadweight loss caused by the imposition of the tax.
While the short-run Phillips curve is upward-sloping, the long-run Phillips curve is downward-sloping
Indicate whether the statement is true or false
Answer the following questions true (T) or false (F)
1. Dumping refers to countries exporting unwanted and inferior products to other countries. 2. Holding all else constant, a rise in interest rates in the United States will cause the dollar to appreciate in international exchange markets. 3. Holding all else constant, an economic expansion in Mexico should decrease the demand for U.S. dollars.