Which of the following statements is true?
A) Technological innovation can cause unemployment in a country as a whole.
B) Technological innovation always complements labor.
C) Technological innovation can cause unemployment in a single industry.
D) Technological innovation always substitutes labor.
C
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Some observers assert that oligopolies are less socially desirable than pure monopolies because
A) monopolies are often government-regulated, whereas collusion among oligopolies may lead to similar results as a monopoly yet, having several firms, may give the illusion of competition.
B) monopolies have unique products, whereas product differentiation in oligopolies would lead to economic inefficiencies.
C) mutual interdependence among firms in an oligopoly would lead to more inefficiencies than in the case of a monopoly.
D) oligopolies tend to engage in advertising more so than monopolies.
Which of the following will change the slopes of your indifference curves between gasoline and movie rentals?
A) a change in your preferences for either of the two goods B) only a change in the price of either of the two goods C) only a change in your income D) Both a change in the price of either good and a change in income will change the slopes of your indifference curves.
If the interest rate in the Mexican economy increases, then the most likely outcome would be that, in Mexico, the
a. economy will move to a new point along its existing consumption curve b. consumption curve will shift upward c. consumption curve will shift downward d. investment curve will shift upward e. economy will move to a new point along its existing investment curve
There are 1,000 identical firms in a price-taker industry. In the short run, total revenues of each firm exceed total costs. What will happen in the long run?
a. Nothing, because each firm is already maximizing its profits. b. Many firms will enter the market and each firm will eventually operate at a loss. c. Additional firms will enter the market, and price will be driven down to where each firm will be making just enough to stay in business. d. Additional firms will enter the market, but the price will remain the same because the existing firms will not allow price to decrease.