The situation in which one large firm can provide the output of the market at a lower cost than two or more smaller firms is called ______.
a. perfect competition
b. producer surplus
c. a natural monopoly
d. an illegal barrier
c. a natural monopoly
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The Federal Deposit Insurance Corporation insures
A) banks against lawsuits. B) the deposits held in the Fed. C) the federal funds market. D) the deposits held in member banks.
The European Commission believes that in 2016 exports of goods and services from Spain will be 22 times larger than in 2013. Irish exports are expected to have grown by 15 percent over the same period. If imports remain constant
A) the current account balance in both countries will become more positive. B) the current account balance in both countries will become more negative. C) there will be no change in the current account balance of both countries. D) in both countries the capital and financial account balance will become more positive.
If you expect the inflation rate to be 4 percent next year and a one year bond has a yield to maturity of 7 percent, then the real interest rate on this bond is
A) -3 percent. B) -2 percent. C) 3 percent. D) 7 percent.
If MR = MC, a monopolist should:
A. stop producing. B. maintain the same level of production. C. decrease production. D. increase production.