A concentrated industry has ________ that dominate a market.
A. an infinite number of firms
B. a large number of firms
C. three or fewer firms
D. a relatively small number of firms
Answer: D
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To compensate for the possibility of indirect crowding out, a government engaging in expansionary policy aimed at eliminating a recessionary gap could
A) reduce taxes rather than increase government spending. B) increase spending less than the simplest Keynesian model would predict. C) both reduce taxes and reduce spending to be able to achieve full employment. D) increase spending more than the simplest Keynesian model would predict.
How does an increase in inflation affect the nominal exchange rate?
What will be an ideal response?
Natural monopolies occur when
a. government antitrust laws are too weak or not enforced b. negative externalities are present c. firms collude to set prices and divide the market among themselves d. one firm can service the market more cheaply than two or more firms can e. a public good is produced by a private firm
A country's economic welfare most directly depends on
A. what it can produce. B. what its citizens can consume. C. how many goods and services it exports. D. how many goods and services it imports.