In 2004 , the pizza market in Charleston, Illinois, was perfectly competitive. But almost overnight, one firm bought up all its competitors to become the monopoly in the Charleston pizza market. As a result,
a. less pizza was produced and price increased
b. more pizza was produced and price increased
c. less pizza was produced and price decreased
d. more pizza was produced and price decreased
e. quantity and price remained the same but profit increased
A
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According to the information presented in the text the parcel and express delivery industry could best be characterized as:
A) a perfectly competitive market. B) a monopolistically competitive market. C) an oligopoly. D) a monopoly.
After a speculative attack has been successful, and a country is forced to devalue its currency, it is common to see many local business firms driven to bankruptcy. This most commonly occurs because _____
a. nobody ever wants to invest in a country that just suffered a devaluation b. many local firms took foreign loans (denominated in, say, dollars), and they cannot repay them at the new exchange rate c. the WTO forces troubled firms to show profits or make way for new, more efficient firms d. local firms cannot compete with their foreign competitors at the new prices after the devaluation e. many local firms do not know how to deal with the complicated financial operations involved in a speculative attack
From 2007 to 2008, the Federal Reserve System reduced interest rates, the price which borrowers pay. As a result, economists expected that the quantity of money supplied would
a. increase. b. decrease. c. not change. d. Uncertain-economic theory has no answer to this question.
Central banks:
A. stopped being used after events like the Great Depression proved them useless. B. in the United States oversee the U.S. economy, as well as some developing nations who do not have a central bank. C. exist in almost every major nation. D. are common only to industrialized nations.