In order for a natural monopoly to develop, it
a. is important that the firm be very large.
b. is important that the firm prices its product below cost.
c. is not the absolute size of the firm but its size relative to the total market demand that is important.
d. must be in the presence of government intervention.
c
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Overseeing who operates banks and how they are operated is called
A) prudential supervision. B) hazard insurance. C) regulatory interference. D) loan loss reserves.
Based on the circular flow model, goods and services flow from:
a. households to businesses in product markets. b. businesses to households in product markets. c. households to businesses in factor markets. d. businesses to households in factor markets.
Public choice refers to how
a. much publicity a government-sponsored project receives b. members of government make choices that promote their own self-interest (to keep their jobs) c. the public makes choices about what types of goods to buy d. private decisions often end up becoming public e. supply and demand curves reflect public opinion
An individual's demand curve for a good is derived by varying the
a. income level and observing the resulting total utility derived from both goods. b. price of one good and observing the resulting quantities of the other good. c. budget line to the left and calculating the loss in total utility. d. price of one good and observing the resulting quantities demanded of that good.