Even when a market appears to be a monopoly, it can be contestable if there are many potential entrants.
Answer the following statement true (T) or false (F)
True
In contestable markets, which are markets subject to potential entry if prices or profits increase, monopoly behavior may be restrained by potential competition.
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Which of the following is a consequence of extending the payback period of a student loan from 10 to 30 years?
A) higher monthly payments B) more interest paid over the life of the loan C) faster payoff of principal D) lower monthly payments initially, but higher monthly payments in the future
Someone who is risk-averse has
A) diminishing marginal utility of wealth. B) constant marginal utility of wealth. C) increasing marginal utility of wealth. D) less marginal utility of wealth than someone who is risk-neutral.
The growing federal budget deficit in the 1980s was accompanied by a
a. growing trade surplus. b. growing trade deficit. c. shrinking trade deficit. d. shrinking capital account surplus.
Why are most flat tax proposals actually calling for a progressive tax?
a. Lower levels of income are exempted. b. All income is taxed equally. c. Higher levels of income are exempted. d. The filing process is simple and quick.