In discussions of barriers to entry, what is meant by the term "virtuous cycle"?
A) A virtuous cycle refers to successful research and development that leads to information that is used to develop other new products.
B) A virtuous cycle refers to the situation where the pursuit of self-interest in establishing an entry barrier leads to an increase in social welfare (the "invisible hand").
C) A virtuous cycle refers to a situation where if a firm can attract enough customers initially, it can attract additional customers because its product's value has been increased by other customers using it, which attracts even more customers.
D) A virtuous cycle refers to a firm using the profits from a monopoly in one market to establish a monopoly in another market.
C
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The price elasticity of demand for wheat is 0.42. A drought cuts the supply of wheat. What will happen to the farmers' total revenue?
A) The total revenue will increase. B) The total revenue will decrease. C) The total revenue will not change. D) There is not enough information to determine what happens to the total revenue.
Worker discrimination occurs when
A) workers refuse to perform risky tasks. B) employers pay different employees different wages based on race. C) workers refuse to work with persons of a different race. D) customers refuse to buy products produced by a racially diverse workforce.
Which of the following units is used to measure nominal GDP in the United States?
a. U.S. dollars b. gold c. percentages d. international monetary units e. units of physical goods and services
Economics is a social science in the sense that it
a. rigorously examines human behavior. b. is not as scientific as physics. c. relies on historical data instead of mathematical data. d. relies on statistics instead of mathematics. e. All of the above are correct.