What distinguishes a natural monopoly from a monopoly?
a. One firm can supply the entire range of demand (picture a downward-sloping industry demand curve) at a lower ATC than can any number of firms
b. One firm has exclusive access to raw materials.
c. The firm has been issued a patent on a cost-saving technology.
d. The government regulates the industry, allowing only one firm to produce.
e. The market contained two firms that merged to become one.
A
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The United States typically experiences a large surplus of milk annually. This is caused by
A. a price ceiling in the market. B. not enough demand for milk. C. a price floor in the market. D. overproduction of milk by the cows.
Which of the following groups tends to have the highest unemployment rate in the United States?
a. African American teenagers b. Workers, age 25 or older, who are college graduates c. White women d. Workers, 25 years of age or older, who are high school dropouts e. White teenagers
Money has to be a precious metal, since precious metals have all of the important characteristics of money
Indicate whether the statement is true or false
When the Fed increases the money supply, the interest rate decreases. This decrease in the interest rate increases consumption and investment demand, so the aggregate-demand curve shifts to the right
a. True b. False Indicate whether the statement is true or false