Newcomers will be enticed to enter an oligopolistic market when ______.
a. entry is easy and there is zero long-run economic profit
b. entry is easy and there are excess profits
c. economies of large-scale production exist
d. a cartel agreement is in place that benefits social welfare
b. entry is easy and there are excess profits
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The division of labor can benefit society only if
A. a system of exchange exists. B. society uses all of its resources efficiently. C. society has no specialized resources. D. labor resources are not scarce.
Gasoline and bicycles are substitutes in consumption. Suppose we increase the federal gasoline tax to $1 per gallon. What are the initial changes that result from the tax as these markets adjust to a new general equilibrium?
A) Gasoline price rises, demand for bicycles shift s leftward. B) Gasoline price rises, demand for bicycles shifts rightward. C) Gasoline price rises, move downward along bicycle demand curve. D) Gasoline price rises, move upward along bicycle demand curve.
The total of all planned production for the entire economy is known as
A. aggregate supply. B. aggregate demand. C. aggregate expenditures. D. aggregate inflation.
One of the most widely followed stock indexes in the United States is the S&P 500. This index represents
A) the stock prices of 500 large U.S. firms. B) the stock prices of the 500 most valuable firms worldwide. C) the stock prices of more than 4,000 U.S. firms. D) the stock prices of 30 large U.S. corporations.