Budget projections for 2014-2020 indicate both higher levels of government spending and large budget deficits. According to the Keynesian view, this will lead to
a. an increase in aggregate supply during that decade.
b. weak aggregate demand and a continuation of recessionary conditions.
c. an increase in aggregate demand and real output.
d. higher interest rates and taxes that will retard future growth.
C
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A natural monopoly arises in an industry in which the per-unit cost of production is: a. lowest when there are a large number of producers in the industry. b. lower for the smaller firms than for larger firms
c. minimized at the output where the industry's profit is maximum. d. lowest when a single firm produces the entire output of the industry.
The first antitrust act passed was the _____ Antitrust Act.
A. Clayton B. FTC C. Celler-Kefauver D. Sherman
An import quota is an example of
A) a price ceiling. B) a price floor. C) a queuing device. D) a quantity restriction.
Assume a hypothetical case where an industry begins as perfect competition and then becomes a monopoly. As a result of this change
A) price will be higher, output will be lower, and the deadweight loss will be eliminated. B) consumer surplus will be smaller, producer surplus will be greater, and there will be a reduction in economic efficiency. C) price will be higher, consumer surplus will be greater, and output will be greater. D) consumer surplus will be smaller and producer surplus will be greater. There will be a net increase in economic surplus.