In an economy where firms in most industries are purely competitive firms, individual firms in each industry would produce ________ products and have a ________ share of industry output.
A. differentiated; large
B. differentiated; small
C. standardized; small
D. standardized; large
Answer: C
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Expansionary monetary policy tends to:
A. lower U.S. prices, make exports more expensive relative to imports, and lower the value of the dollar. B. raise U.S. prices, make exports cheaper relative to imports, and raise the value of the dollar. C. raise U.S. prices, make exports more expensive relative to imports, and lower the value of the dollar. D. lower U.S. prices, make exports cheaper relative to imports, and raise the value of the dollar.
One problem with the infant industry argument is that
A. it fails to protect domestic industries from foreign competition. B. it must be approved by the Federal Reserve Board. C. it must be approved by the IMF and the World Bank. D. the protection is typically never removed, creating a domestic monopoly.
Insurance exchanges:
A. are government-regulated markets where individuals can purchase health insurance to satisfy the personal mandate provision of the PPACA. B. are expected to significantly increase health care costs by expanding government regulation. C. are government-regulated markets where prices are set directly by federal regulators. D. allow patients to get medical treatment when away from the providers covered by their regular health insurance.
If a positive externality exists in the provision of education when education is provided in a perfectly competitive market without government intervention, at the market equilibrium level of education:
A. the marginal social benefit of education equals the marginal social cost. B. additional net gains to society are possible by raising the level of education. C. additional net gains to society are not possible by either increasing or decreasing the level of education. D. additional net gains to society are possible by reducing the level of education.