When economists say a market has "barriers to entry," they refer to:
A. monopolists being prohibited from selling their products to certain customers.
B. a policy that some countries establish to reduce imports from other countries.
C. factors that prevent other firms from challenging a firm with market power.
D. economic profits that are positive, but too high to encourage entry.
Answer: C
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The aggregate demand curve would shift to the right as a result of
A) a decrease in the U.S. real interest rate. B) tax increases. C) a decrease in the amount of money in circulation. D) a drop in the price level.
Globalization has depressed wages in western industrialized countries, particularly those for
A) highly skilled workers. B) highly educated workers. C) semi-skilled workers. D) low skilled workers.
Assume total reserves are $1 million, check able deposits are $5 million, and the reserve requirement is 10 percent. What are the excess reserves?
a. $4 million b. $6 million c. $1 million d. $500,000
In utilizing unconventional monetary policy in 2010, the Federal Reserve purchased
A. real estate worth more than $2 trillion. B. $800 billion in Treasury bills. C. over $1 trillion in mortgage backed securities. D. $600 billion in long-term Treasury bonds.