What is the effect on the consumer of a firm having a monopoly on a particular product the consumer needs?
a. The consumer will pay a lower price for the product because the company can only produce as many units as it can sell.
b. The consumer will pay a lower price for the product because the company must price products well to keep competitors out of the market.
c. The consumer will have to pay a higher price for the product because costs rise as competitors enter the market.
d. The consumer will have to pay a higher price for the product than if there were competition for producers.
d. The consumer will have to pay a higher price for the product than if there were competition for producers.
Consumers will suffer from a monopoly because a lower quantity will be sold in the market at a higher price than would have been the case in a perfectly competitive market.
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An increase in the money supply would cause the IS curve to
A) shift up and to the right. B) shift down and to the left. C) remain unchanged. D) shift up and to the right only if people face borrowing constraints.
The other name for the National Labor Relations Act of 1935 is
A) the Wagner Act. B) the Taft-Hartley Act. C) the Clayton Act. D) the Wheeler-Lea Act.
Which of the following shifts aggregate demand to the right?
a. a decrease in the money supply b. increases in the profitability of capital due perhaps to technological progress. c. the repeal of an investment tax credit d. a decrease in the price level
An economy has two workers, Paula and Ricardo. Everyday they work, Paula can produce 4 computers or 16 shirts, and Ricardo can produce 6 computers or 12 shirts. What is the opportunity cost for Paula to produce one shirt?
A. ½ computer B. 4 computers C. 2 computers D. ¼ computer