Public utilities are the classic examples of
A. industries protected by patents.
B. industries owning a scarce factor of production.
C. natural monopolies.
D. industries with network effects.
Answer: C
You might also like to view...
Suppose that you know a good is a normal good for a consumer. Which of the following can you then conclude to be true:
A. The own-price elasticity of demand is less than -1. B. The income elasticity of demand is greater than 0. C. The own-price elasticity of demand is greater than -1. D. The income elasticity of demand is less than 0. E. Both (a) and (b). F. Both (a) and (d). G. Both (b) and (c). H. None of the above.
You have just read that the Federal Reserve has increased the money supply to avoid a recession. For a given price level, you would expect the LM curve to
A) shift up and to the left as the real money supply falls. B) shift up and to the left as the real money supply rises. C) shift down and to the right as the real money supply falls. D) shift down and to the right as the real money supply rises.
Nonactivists of policies contend that a policy of shifting the aggregate ________ curve will be costly because it produces ________ volatility in both the price level and output
A) supply; less B) supply; more C) demand; less D) demand; more
The financial institutions in our banking system are all in the business of transferring funds from savers to investors. This process is known as
A. money laundering. B. the circular flow. C. direct financing. D. financial intermediation.