A natural monopoly is defined as
A) a market in which competition and entry are restricted by the granting of a government license.
B) an industry in which economies of scale allow one firm to supply the entire market at the lowest possible cost.
C) a market in which competition and entry are restricted by the granting of a patent.
D) any market where one firm constitutes the entire industry.
B
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In contrast to the earlier neoclassical models of economic growth, in endogenous growth models, there is more emphasis on
a. human capital. b. externalities. c. increasing returns to scale. d. all of the above.
Some observers opposing free trade argue that when we buy shoes from Brazil, U.S. workers lose their jobs. The fact of the matter is that
A) no U.S. worker has actually lost a job because of free trade. B) most jobs lost because of free trade pay less than the poverty level. C) free trade creates jobs in export industries. D) the jobs lost are really in Brazil.
If the required reserve ratio is equal to 10 percent, a single bank can increase its loans up to a maximum amount equal to
A) its excess reserves. B) 10 times its excess reserves. C) 10 percent of its excess reserves. D) its total reserves.
One explanation that behavioral economists give for procrastination and other time-inconsistent behavior is
A) people's personal discount rate is greater in the far future than in the near future. B) people's personal discount rate is smaller in the far future than in the near future. C) people's personal discount rate is the same in the far future as in the near future. D) None of the above.