A monopolist
A. is protected from competition by barriers to entry.
B. must use the most efficient technology or it will be driven out of business by firms that do.
C. faces the same pressures to innovate as a competitive firm does.
D. faces the same pressures to cut costs as a competitive firm does.
Answer: A
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In the United States, out-of-pocket spending on health care per person
A) has remained fairly steady since 1965. B) has been rising since 1965. C) fell from 1965 through 1995, then began to rise from 1995 to the present. D) has been falling since 1965.
During times of inflation conservative economists would be most in favor of
A. spending cuts. B. spending increases. C. tax cuts. D. tax increases.
The type of unemployment that occurs because of a recession is called:
A. frictional unemployment. B. seasonal unemployment. C. natural unemployment. D. cyclical unemployment.
To close a recessionary gap through fiscal policy, the government should
A) decrease government spending in order to increase aggregate supply. B) increase government spending in order to increase aggregate demand. C) reduce taxes in order to stimulate investment, and thus increase aggregate supply. D) increase government spending and taxes in order to both increase aggregate demand and aggregate supply.