Explicit costs include
a. monitoring expenses incurred by the government
b. enforcement costs paid by the public sector
c. compliance costs incurred by all economic sectors
d. all of the above
e. none of the above
d. all of the above
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In a competitive market where the elasticity of the market demand curve is -0.5, there are 100 identical firms, and the elasticity of the supply curve to the other 99 firms is 4. What is the elasticity of the demand curve of the 100th firm?
A) -446 B) -489 C) -50 D) -0.5
Compared to most other industrialized countries shown in the text, the national debt as a percentage of GDP in the United States is:
a. substantially larger. b. the same. c. slightly larger. d. substantially smaller.
Generally speaking, a country whose currency depreciates will experience, as a result,
A. Inflationary pressure because the prices of imports rise. B. Increasing unemployment in export sectors. C. Falling interest rates from a capital outflow. D. Reduced aggregate demand.
Some economists believe that the economy benefits from firms having market power. Which of the following is an argument that has been made to support this position?
A) Large firms are better able than small firms to spend funds on research and development required to develop new products. B) Competition is very rare in the U.S. economy and few new products are produced by smaller, competitive firms. C) Research has shown that the deadweight loss from monopolies is a small percentage of the value of production in the United States. D) Large firms can afford to lobby the U.S. government in order to impose restrictions on imports and reduce the outsourcing of jobs to other countries.