If the supply curve of a commodity is upward sloping, and the producing country begins to export more in a pure free trade system, the domestic price of the commodity will
a. fall.
b. rise.
c. exceed the price in foreign countries.
d. be below the price in foreign countries.
b
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The United States Mint is the only legal entity to produce circulating coinage for the United States. Michael Jackson's estate owns the copyrights to many of the Beatles songs
Xcel Energy is a public utility company who is the sole provider of electricity and natural gas in some states such as Colorado, New Mexico and Minnesota. Which of these entities, if any, is a natural monopoly? A) United States Mint B) Xcel Energy C) Michael Jackson's estate D) None of these are natural monopolies.
Some economists argue that competitive price-searcher markets are inefficient because
a. the firms earn economic profits in the long run. b. the firms' marginal costs and marginal revenues are not always equal. c. firms do not produce the output rate that would minimize their average total costs. d. barriers to entry are high.
Which question is an illustration of a macroeconomic question?
A. Is a corporation unresponsive to the demands of its customers? B. How will the government's budget deficit be affected by public infrastructure projects? C. Is a consumer boycott an effective means of reducing a product's price? D. Are oil companies ripping off consumers by charging exorbitantly high prices for gasoline?
Which is most characteristic of a pure monopoly?
A. There is a dominant firm in a multifirm industry. B. Exit from the industry is blocked but entry into the industry is relatively easy. C. The firm produces a good or a service for which there are no close substitutes. D. The firm has considerable control over the quantity of the output produced, but not over price.