The consensus among economists who consider monopoly and oligopoly to be both inevitable and undesirable is, when confronted with a monopolized industry, to
a. look the other way
b. allow government regulation of the industry
c. withhold patent privileges
d. engage in a laissez-faire strategy
e. purchase controlling stock in the monopoly
B
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If the percentage increase in price is 15 percent and the value of the price elasticity of demand is -3, then quantity demanded
A) will increase by 5 percent. B) will decrease by 5 percent. C) will increase by 45 percent. D) will decrease by 45 percent.
Refer to Table 9-12. Prior to trade, what was the opportunity cost to produce 1 sword in Morocco?
A) 1/2 of a belt B) 1 belt C) 1.5 belts D) 2 belts
Which of the following is an example of a normative statement?
A) Since this good is bad for you, you should not consume it. B) This good has bad health effects. C) If you consume this good, you will get sick. D) People usually get sick after consuming this good.
If a society only cares about efficiency and not equity, then
A) all points on the contract curve yield the same level of social welfare. B) it will not rely on competitive markets to allocate goods. C) it will maximize the utility of its worst-off member. D) an equitable outcome is impossible.