The market structure for an industry can limit the amount of profit a firm can make.
Answer the following statement true (T) or false (F)
True
Not all businesses have an equal opportunity to earn an economic profit. The opportunity for profit may be limited by the structure-how many other firms offer similar products-in which the firm is engaged.
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Expansionary fiscal policy crowds out both domestic investment and net exports
Indicate whether the statement is true or false
Most economists estimate that the U.S. factor of production most likely to be hurt by the formation of the NAFTA is unskilled U.S. labor
Indicate whether the statement is true or false
If a bank has $1 million in demand deposits, $400,000 in reserves, and faces a 30 percent reserve requirement, the amount of money that a bank could initially create by loaning out their excess reserves is:
a. $600,000. b. $400,000. c. $300,000. d. $100,000.
Government regulation of _______________ protects customers from high prices in situations where there is no competition that would ordinarily keep prices down.
a. natural monopolies b. monopolistic competition c. perfect competition d. luxury markets