For many years the Aluminum Company of America (Alcoa) controlled most of the world's supply of high quality bauxite, the ore needed to produce aluminum. What type of entry barrier was responsible for Alcoa's position in the aluminum industry?
A) ownership of a key input B) a patent on the manufacture of aluminum
C) economies of scale D) a government-imposed barrier
A
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Real income will rise from one year to the next if nominal income
A. rises and the price level rises faster. B. falls and the price level falls faster. C. falls faster than the price level. D. falls and the price level rises.
Staggered, overlapping contracts mean
A) the contract between workers and firms can be opened for renegotiation if other key firms in the industry have signed a new contract within the last ninety days. B) each firm within an industry agrees to negotiate with the union according to a schedule. C) not all labor contracts within the economy expire at the same time. D) different contracts are reached for the different skill classifications of workers within a firm.
Assume an indifference curve yields a consumer 1,000 utils of total utility. If the consumer's budget increases by 50 percent, then the indifference curve:
a. shifts rightward. b. shifts leftward. c. becomes more linear. d. is unchanged.
An American investor purchasing a Japanese government bond
a. creates a demand for dollars and a supply of yen in the foreign exchange market. b. creates a demand for yen and a supply of dollars in the foreign exchange market. c. causes the yen to depreciate. d. causes the dollar to appreciate.