Which of the following is a valid effect of monopoly power?
A. Desirable effects on the distribution of wealth
B. Efficient resource allocation
C. Fostering of innovation
D. Obstacle to efficiency
Answer: D
You might also like to view...
An increase in the effective tax rate on capital would cause the IS curve to
A) shift up and to the right. B) shift down and to the left. C) remain unchanged. D) remain unchanged if taxes are fully deductible from income; otherwise, shift up and to the right.
Which of the following statements is correct?
a. Neither economic theory nor evidence from the U.S. economy suggests that there is a close link between productivity and real wages. b. Economic theory suggests that there is a close link between productivity and real wages, but evidence from the U.S. economy fails to confirm that link. c. Evidence from the U.S. economy suggests a close link between productivity and real wages, but economic theory provides no basis for such a link. d. Both economic theory and evidence from the U.S. economy suggest that there is a close link between productivity and real wages.
An individual would suffer higher losses from an unexpectedly higher inflation rate if
a. she held much currency and owned few bonds. b. she held much currency and owned many bonds. c. she held little currency and owned few bonds. d. she held little currency and owned many bonds.
Which of the following products comes closest to having a perfectly inelastic demand?
A) gasoline B) cholesterol medication in general C) iPhones D) bus rides