The monopolist is able to enjoy profits in the long run because:
A. the firm can charge a price higher than its average total costs in the long run.
B. there is no threat of competition.
C. the firm's price is set above its marginal costs.
D. All of these statements are true.
Answer: D
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In the long run, what effect does a government's deficit spending have on equilibrium real Gross Domestic Product (GDP)?
A) Equilibrium real Gross Domestic Product (GDP) will increase beyond the full-employment level and there will also be an inflationary effect. B) Higher government deficits will not raise equilibrium Gross Domestic Product (GDP) above the full-employment level. C) Deficit spending will decrease the nation's equilibrium real Gross Domestic Product (GDP). D) The government's deficit spending will increase equilibrium real Gross Domestic Product (GDP).
Which of the following are reasons that caused the Fed to abandon its practice of setting money supply targets?
I. expiration of the legislation requiring the Fed to do so II. banking deregulation in the 1980s allowing for MMDAs III. financial development of retail sweep programs A) IandIIonly B) II and III only C) I and III only D) I, II, and III
A natural monopoly arises when:
A. economies of scale are so great that only one firm can exist in a market. B. a firm acquires a patent. C. two firms merge to become the only firm serving an entire market. D. a single firm controls all of a natural resource.
One of the most controversial features of the Maastricht Treaty is
A) the lack of ability of individual countries to set their own monetary policies. B) increased control of health and safety measures by the European Commission. C) the free movement of labor throughout Europe. D) the elimination of passport controls in parts of Europe.