What is a public franchise? Are all public franchises natural monopolies?
What will be an ideal response?
A public franchise is a firm which the government designates as the only legal provider of a good or service. It is doubtful that most public franchises are natural monopolies. If they were, they wouldn't need the government to restrict their competitors.
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For a single-price monopoly, marginal revenue is ________ when demand is elastic and is ________ when demand is inelastic
A) negative; negative B) negative; positive C) positive; negative D) positive; positive
What can be concluded from Milton Friedman and Edmund Phelps' expectations-augmented Phillips curve?
A) that there is no long run tradeoff between unemployment and inflation B) that there is a short run tradeoff between unemployment and inflation C) that there are two types of Phillips curves D) all of the above E) none of the above
Which of the following would be recorded in the U.S. goods export account?
a. Harry, an American citizen, spends 1,000 francs on vacation in the south of France. b. A machine shop in Ohio purchases a grinder made in Italy. c. Martha receives a $50 dividend check on stock she owns in a business in Germany. d. The U.S. government subsidizes American farmers for planting corn for export. e. France purchases a new jet fighter aircraft from the Boeing Company in the United States.
If the CPI is 100 in the base year and 108 in the current year, how much did prices rise between the base year and the current year?
A) 8 percent B) 108 percent C) 1.08 percent D) 0.08 percent E) ?80 percent