Figure 13.1 shows a demand and costs of an unregulated monopoly. This firm must:
A. be a natural monopoly.
B. have an exclusive government license.
C. be a monopoly because it has a patent.
D. be operating in a contestable market.
Answer: A
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Which of the following would shift the supply curve for smartphones to the right?
A) an increase in consumer income (assuming that all smartphones are normal goods) B) an increase in the price of a substitute in production C) a decrease in the price of an input used to produce smartphones D) a decrease in the number of firms that produce smartphones
In general, entrepreneurs prefer:
A. more diversification, to reduce the risk of their ventures. B. more diversification, to increase the risk and payoff of their ventures. C. less diversification, to reduce the risk of their ventures. D. less diversification, to increase the risk and payoff of their ventures.
Which of the following is true, if real GDP in Year 1 is €5,000 and in Year 2 is €5,200?
(a) Output has increased by 4 percent. (b) Output has declined by 4 percent. (c) Output change is uncertain. (d) The economy is experiencing 4 percent inflation.
Note: Amounts in $ trillionsRefer to the above table. Which variables in the table are NOT autonomous?
A. planned investment, net exports, and government spending B. taxes, government spending, and saving C. planned saving only D. planned consumption and planned saving