Governments often choose to regulate monopolies, rather than break them up into smaller firms, because monopolies often are
a. entitled to economic profits
b. very big and politically powerful
c. more efficient producers
d. providing useful goods and services that would not otherwise be provided
e. heavily subsidized
C
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If the marginal benefit of a good exceeds its marginal cost
A) we've achieved efficient resource use. B) we should produce more to achieve the allocatively efficient use of resources. C) we should produce less to achieve the allocatively efficient use of resources. D) we cannot tell if more or less should be produced to achieve the allocatively efficient use of resources.
Suppose a credit union strives for a 3% real return on its loans to members, and expects a 2% inflation rate. What nominal rate of interest should it charge its members?
A) 0% B) 1% C) 3% D) 6%
As a form of business, a sole proprietorship
A) cannot issue stock. B) has limited liability. C) has the most government rules and regulations affecting it. D) has more than one owner.
The "vicious cycle of discrimination" refers to
a. the use of statistical discrimination to perpetuate the impact of employer prejudice on minorities b. the portion of the wage differential between two groups that cannot be accounted for by differences in education and job experience c. lower wage rates that reduce incentives to improve skill levels and gain job experience, which perpetuates lower wage rates d. any job-market discrimination that remains after all premarket discrimination has been eliminated e. job-market discrimination that leads to increased prejudices among workers and customers, thus generating more discrimination