When a second firm enters a monopolist's market:
A. market price will drop.
B. sales for the first firm will rise.
C. the first firm's profits will increase.
D. All of these will occur.
Answer: A
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Use the following diagram to answer the next question.
We observe that the economy has moved from NX1 to NX3. This could have happened because ________.
A. imports decreased B. exports increased by more than imports C. exports increased by less than imports D. exports increased
How do exports affect buyers' consumer surplus?
What will be an ideal response?
Which of the following is the most important nonmarket transaction omitted from the GDP?
a. service of housewives or househusbands b. tending small gardens c. bartering between two people d. mowing the lawn
What does an economic safety net provide, and why would a country want to have one?
What will be an ideal response?