The situation where a single firm can supply the product to an entire market at a lower unit cost than if the market were split among a number of competing firms, is called a:
A. Dominant firm oligopoly
B. Structured market
C. Natural monopoly
D. Trust
C. Natural monopoly
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The segregation of Hispanic students is somewhat less than those of black students
Indicate whether the statement is true or false
When a recession occurs, we would expect the government to run a budget deficit by raising the level of its spending or by cutting taxes, or perhaps both. The Fed would be expected to
a. reduce the legal reserve requirement, increase the discount rate, and buy securities on the open market b. reduce the legal reserve requirement, reduce the discount rate, and sell securities on the open market c. reduce the legal reserve requirement, reduce the discount rate, and buy securities on the open market d. increase the legal reserve requirement, reduce the discount rate, and sell securities on the open market e. increase the legal reserve requirement, increase the discount rate, and sell securities on the open market
Mr. Stewart owns the only hardware store in a small Midwestern town. His nearest competition is more than 50 miles away, yet he does not earn any economic profit. Does someone need to explain the economic concept of monopoly to him?
Voluntary trade promotes economic progress because it
A) moves goods, services and resources from people who value them more to individuals who value them less. B) benefits buyers at the expense of sellers. C) encourages individuals to become self-sufficient. D) makes larger outputs possible as a result of specialization.