If a monopoly can produce a good at zero marginal cost, then its Lerner Index is
A) zero.
B) one.
C) infinity.
D) undetermined.
B
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During an inflationary period, those most likely to suffer reduced wealth are those who are holding their wealth in: a. gold
b. real estate. c. currency. d. stocks.
Through good economic years and bad, many European economies had unemployment rates hovering near _________ since the 1970s.
A. 40% B. 10% C. 20% D. 15%
The poverty trap refers to:
A. richer countries spiraling downward into poverty if they invest in the wrong industries. B. richer countries spiraling downward into poverty if they fail to invest enough in physical capital. C. poorer countries having a harder time buying the things that will end their poverty. D. All of these describe the poverty trap.
Effective usury laws:
A. subsidize lenders. B. penalize those who borrow at the below-market interest rate. C. improve efficiency in investing. D. keep some low-income people from obtaining credit and loans.