Given that C = $500 + 0.8YD, if the level of disposable income is $1,000, the level of saving is
A. $500.
B. -$1,300.
C. -$300.
D. $300.
Answer: C
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High barriers to entry protect the market power of existing firms and discourage the formation of firms which:
a. invest heavily in research and development activities. b. use illegal procedures to capture the market. c. are inefficiently small and cannot realize economies of scale. d. are large enough to dominate the existing firms.
At equilibrium, deadweight loss is zero.
Answer the following statement true (T) or false (F)
Which of the following factors will shift AD1 to AD3?
A. An increase in expected returns on investment
B. An increase in productivity
C. A decrease in real interest rates
D. A decrease in consumer wealth
Which of the following would explain why Josh's Limo Service might increase its demand for limo drivers?
A) an increase in demand for limo rides, resulting in a rise in the price of a limo ride B) a decrease in the demand for limo rides C) a fall in the price of a taxi ride D) a rise in the wage paid to limo drivers