When the government prohibits certain kinds of market behavior such as monopoly and monopolistic practices it generally does so through
A) regulatory agencies such as the Interstate Commerce Commission or the Federal Communications Commission.
B) antitrust law.
C) the police powers of the states.
D) use of the capture theory of regulation.
B
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An efficient allocation of labor occurs when the
A) marginal benefit to workers exceeds the marginal benefit to firms. B) marginal benefit to firms exceeds the marginal benefit to workers. C) marginal cost to workers is equal to the marginal benefit to firms. D) marginal cost and marginal benefit of both workers and the firms are equal to zero. E) marginal benefit of workers exceeds the marginal cost to firms by as much as possible.
In the above figure, at the price level of 140 and real GDP of
A) $15 trillion, firms will not be able to sell all their output. B) $5 trillion, firms will not be able to sell all their output. C) $5 trillion, consumers will not be able to buy all the goods and services they demand. D) $15 trillion, consumers will not be able to buy all the goods and services they demand.
When you were born, your parents deposited $10,000 in the bank. The bank offers a fixed interest rate of 4 percent. On your eighteenth birthday, your parents decide to withdraw the money that they deposited to pay for your college tuition
How much money can they expect to withdraw? Assume that interest is compounded annually.
The reason that supply and demand tend to be more price elastic over longer time periods is because
A) it takes time for households and businesses to adjust to price changes. B) some goods have longer shelf life and are reordered less often. C) firms incur costs in changing the price of goods on their shelves. D) the feedback loop from buyers to sellers takes time.