When a few firms sell similar products in a market, the market structure is most likely to be:
A. a perfectly competitive market.
B. a monopoly.
C. a monopolistically competitive market.
D. an oligopoly.
Answer: D
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The quantity of financial capital supplied at any given time must _______ the quantity of financial capital demanded for purposes of making investments; however, the makeup of these items will determine the national saving and investment identity.
a. reduce b. exceed c. equal d. add to
Explain how and why economic events in the United States affected the economies of Thailand, South Korea, and Indonesia and vice-versa.
What will be an ideal response?
Which of the following is true?
a. The growth of third-party payments during the last several decades has helped control inflation in the health-care sector. b. Public policy encourages Americans to purchase low deductible/low co-payment health insurance coverage through their employers. c. Low deductible health insurance coverage encourages health-care consumers to search for the best prices. d. The 2.9 percent Medicare payroll tax is sufficient to cover the cost of the promised future health-care services to senior citizens.
In many countries, the government chooses to "internalize" the monopoly by owning monopoly providers of goods and services. (In some cases these firms are "nationalized," and the government actually buys or confiscates firms that operate in monopoly
markets). What would be the advantages and disadvantages of such an approach to ensure that the "best interest of society" is promoted in these markets? Explain your answer.