Often to secure a monopoly, one must erect barriers to entry to obtain a monopoly. What is this activity called in general and what does it entail specifically?
What will be an ideal response?
Rent seeking is the term used to describe activities that are performed for the purpose of obtaining or retaining a monopoly. Specific activities might include lobbying, campaign contributions, bribery, lawsuits.
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The effect on the IS curve of a reduction in taxes will be less the
A) flatter is the LM curve. B) steeper is the LM curve. C) greater the extent of "crowding out." D) greater is the marginal propensity to save.
Which of the following would cause the money supply in the United States to expand?
a. A decrease in reserve requirements. b. An increase in the discount rate. c. The sale of U.S. government bonds by a Federal Reserve bank. d. An increase in the world supply of gold.
(Last Word) Passively managed funds produce higher rates of return for investors than actively managed funds because:
A. trading and management costs are higher with actively managed funds. B. passively managed funds invest in riskier assets that have higher rates of return. C. actively managed funds invest in riskier assets that have not reached expected rates of return. D. actively managed funds are taxed, while passively managed funds are not taxable.
The above table gives real GDP and the aggregate expenditure schedule. Equilibrium real GDP is
A) $11 billion. B) $12 billion. C) $10 billion. D) $14 billion. E) $13 billion.