Which of the following is true of market power?
a. It is the ability of a firm to increase market price
b. It represents the ability to enter or exit an industry.
c. It is the ability to earn an economic profit in the long run.
d. It is the ability of a firm to decrease market price.
a
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According to classical growth theory, if labor productivity increases,
A) people save more, which increases the capital per hour even more, and so economic growth continues indefinitely. B) the population grows and eventually real GDP returns to the subsistence level. C) the population grows but more slowly than real GDP so that people's incomes are permanently higher. D) the pursuit of profit causes further increases in capital per hour and technology and economic growth continues indefinitely. E) the growth rate of real GDP per person permanently increases.
Summarize the effects of a subsidy on the market price and the quantity produced
What will be an ideal response?
The text discusses the projected increases in the claims on the economy by entitlement programs between the mid 1990s and 2035 . It argues that
a. the projected growth of Medicare claims far outstrips that of Social Security b. as a percentage of GDP, both Medicare costs and Social Security costs will fall c. age and health-care demands are related with the majority of claimants being the young d. the rate of growth of Social Security payments will be higher than the rates for either Medicare and Medicaid e. Social Security and Medicare costs will remain at about the same percent of GDP
Exhibit 15-5 International currency markets
Exhibit 15-5 displays the international currency market for yen in terms of dollars and dollars in terms of yen. The demand curve in graph 15-5(A) is determined by:
A. U.S. citizens attempting to purchase Japanese-made goods. B. Japanese attempting to purchase U.S.-made goods. C. U.S. businesses attempting to sell to the Japanese. D. Japanese businesses attempting to sell to the U.S.