Does the threat of entry reduce the monopoly problem?
What will be an ideal response?
Yes, as an insecure monopolist will produce more than a secure monopolist, getting closer to the competitive outcome.
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The number of computers produced per day in Domium is 1,000 more than the number of computers produced in Chromium. Domium and Chromium have the same number or workers and have the same opportunity costs for producing computers
Which of the following statements is true? A) Domium has an absolute advantage in producing computers. B) Chromium has an absolute advantage in producing computers. C) Chromium has a comparative advantage in producing computers. D) Domium has a comparative advantage in producing computers.
Give two reasons why GDP does not reflect total production in an economy
What will be an ideal response?
German luxury car exports were hurt in 2009 as a result of the recession. How would this decrease in exports have affected Germany's aggregate demand curve?
A) The aggregate demand curve would have shifted to the right. B) The aggregate demand curve would not have shifted, but there would have been a movement up the aggregate demand curve. C) The aggregate demand curve would have shifted to the left. D) The aggregate demand curve would not have shifted, but there would have been a movement down the aggregate demand curve.
Variations in a time-series forecast can be caused by:
a. cyclical variations b. secular trends c. seasonal effects d. a and b only e. a, b, and c