Market failure occurs in natural monopolies because
A. Consumers are not willing to pay the price that the monopolist charges.
B. The monopolist fails to maximize profits.
C. The monopolist charges a price lower than marginal cost.
D. Consumers get inaccurate information about the opportunity cost of the product.
Answer: D
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Suppose the velocity of money is not fixed, but stable at about two percent growth per year
How could the quantity theory of money be modified to include a stable growth rate of the velocity of money? In this modified quantity theory of money with velocity growing at two percent per year, what would the growth rate of the other variables in the theory need to be to cause inflation?
The three players in the money supply process include
A) banks, depositors, and the U.S. Treasury. B) banks, depositors, and borrowers. C) banks, depositors, and the central bank. D) banks, borrowers, and the central bank.
If an economy produces 1,000 units of output with a price level of $1 and the money supply (M) is $500, velocity is:
A. 2. B. 500. C. 50. D. 5.
What were greenbacks?
a. paper currency issued by the Confederacy during the Civil War b. paper currency issued by the Union during the Civil War c. fiat money used by the Confederacy during the Civil War d. commodity money used by the Union during the Civil War