A market economy benefits from market power
A) if firms with market power do research and development with the profits earned.
B) if market power gets so bad the government creates public enterprises.
C) if the majority of the population are entrepreneurs.
D) under no circumstances.
A
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The demand curve for high-skilled workers lies to the right of the demand curve for low-skilled workers because of the costs associated with obtaining skills
Indicate whether the statement is true or false
If a stock's dividend is expected to grow at a constant rate of 6 percent in the future
and it has just paid a dividend of $2.50 a share, and you have an alternative investment of equal risk that will earn a 8 percent rate of return, what would you be willing to pay per share for this stock? A) $2.86 B) $33.13 C) $132.50 D) $200.00
If a city decides to restrict the number of pizza parlors,
A) the price of pizza will increase. B) pizza parlors will make higher profits. C) total welfare will decrease. D) All of the above.
Under which of the following assumption can activist policies have sizable effects on aggregate demand?
A. infrequent information updates B. rational inattention C. habit formation among people D. all of these