When unregulated monopolies exist,
A. Prices tend to be higher than with a competitive market.
B. Externalities occur.
C. Quality tends to be higher than with a competitive market.
D. Production tends to be higher than with a competitive market.
Answer: A
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If the real interest rate falls, other things being the same, the quantity of loanable funds demanded ________ and the quantity of loanable funds supplied ________
A) does not change; decreases B) increases; increases C) increases; decreases D) decreases; does not change E) decreases; decreases
The return on human capital
A) tends to be much greater than the return on physical capital. B) tends to be much lower than the return on physical capital. C) is similar to the return on physical capital. D) cannot be related to the return on physical capital since human capital and physical capital are so different.
How does a competitive market compare to a monopoly that engages in perfect price discrimination?
a. In both cases, total social welfare is the same. b. Total social welfare is higher in the competitive market than with the perfectly price discriminating monopoly. c. In both cases, some potentially mutually beneficial trades do not occur. d. Consumer surplus is the same in both cases.
The law of diminishing marginal product shows the relationship
A. between inputs and outputs for a firm in the long run. B. between short-run and long-run outputs of a firm. C. between inputs and outputs for a firm in the short run. D. between accounting and economic profits.