If there are strong economies of scale and scope, then society
A. can benefit from regulation of a natural monopoly.
B. can gain when more firms enter the market.
C. can gain when regulators place a price floor on the market.
D. should promote the expansion of federally run markets.
Answer: A
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Why can corporations issue bonds that mature long in the future, but partnerships and single-owner firms can only borrow for relatively short periods of time?
Which of the following sequences leads to a shortage of gasoline?
a. Gas price is fixed at PC; S1 shifts to S2; a gap develops between QS and QD.
b. Gas price is fixed at PC; a gap develops between QS and QD; S1 shifts to S2.
c. S1 shifts to S2; gas price is fixed at PC; a gap develops between QS and QD.
d. S1 shifts to S2; a gap develops between QS and QD; gas price is fixed at PC.
f Bob earns $20,000 per year and Sue earns $100,000 a year, and there is a flat tax of 10 percent imposed, then Bob would pay __________, Sue would pay ___________, and this is a __________ tax.
A. $2,000; $10,000; proportional B. $2,000; $10,000; progressive C. $2,000; $10,000; lump-sum tax D. $200; $1,000; flat tax
Which of the following technological developments gave rise to labor unions in the United States?
a. transfer of plants and animals during the Columbian exchange b. invention of methods for large-scale crop production and storage c. advances in machine automation and manufacturing processes d. rapid increase in computer information systems after World War II