Any costly activity firms undertake to protect their monopoly status is referred to as
a. market power
b. price-setting behavior
c. rent seeking
d. economies of scale
e. legal intervention
C
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The above figure shows the U.S. market for flip-flops. With international trade, the United States imports ________ flip-flops
A) 300,000 B) 500,000 C) 700,000 D) 0 flip-flops because the United States exports E) 400,000
A surplus in our balance of payments causes the dollar to __________, which causes the surplus to __________
A) appreciate; increase B) appreciate; decrease C) depreciate; increase D) depreciate; decrease
When a firm practices perfect price discrimination,
a. Consumer surplus is maximized b. Producer surplus is minimized c. Producer surplus is maximized d. None of the above
Economists who argue in favor of rapid deficit reduction claim that deficit reduction will
a. reduce crowding in, reduce interest rates, and increase AS. b. stimulate AD and productivity. c. trigger crowding in, increase investment, and increase AS. d. reduce crowding out, increase investment, and increase AS.