The production possibilities frontier shifts as
A) tastes and preferences change.
B) the money supply grows or shrinks.
C) technology changes.
D) the unemployment rate changes.
Answer: C) technology changes.
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The decline in the role of manufacturing over the last four decades has caused our economy to be
A. less vulnerable to inventory cycles. B. more vulnerable to inventory cycles. C. has not affected the vulnerability to inventory cycles. D. caused an increase in frictional unemployment.
What is one reason firms might lobby to prevent entry into their market?
A) The long run equilibrium might be characterized by P = MC = ATC. B) The long run equilibrium might be characterized by P = MC < ATC. C) The long run equilibrium might be characterized by P > MC = ATC. D) The long run equilibrium might be characterized by P = MC > ATC.
Exploitation due to a single buyer in the input market is known as
A) monopoly exploitation. B) monopsonistic exploitation. C) Marxian exploitation. D) the result of closed shops.
Which of the following would be most likely to have monopoly power?
a. a long-distance telephone service provider b. a local cable TV provider c. a large department store d. a gas station