What are the pros and cons of regulating a monopoly?
Answer: Monopolies are firms that have a complete dominance on the supply and distribution of a good or service. Monopolies by definition are illegal and are usually regulated by the government.
The pros of regulating a monopoly are that it allows other competition to enter the market and create a competitive environment for a better quality product or service. It also prevents companies from growing too large and becoming too powerful or corrupt or controlling other industries.
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The federal funds market refers to the market where:
A) the Fed obtains loans of reserves from central banks of other nations. B) the federal government borrows overnight funds from the Fed. C) banks obtain loans of reserves from each other. D) there are no predetermined rates of interest on loans and the highest bidding borrower gets the loan.
Property rights that are granted to the creators of original work to produce and sell that work are called
A) trademarks. B) copyrights. C) patents. D) exclusive franchises.
Which of the following statements best completes the sentence, "All other factors constant, as the nominal interest rate increases, the opportunity cost of money..."?
A. decreases, the velocity of money decreases, and the quantity of money people want to hold decreases. B. increases, the velocity of money increases, and the quantity of money people want to hold decreases. C. decreases, the velocity of money increases, and the quantity of money people want to hold decreases. D. increases, the velocity of money decreases, and the quantity of money people want to hold decreases.
When the market mechanism is allowed to operate freely, prices will determine
A. The mix of output to be produced, the resources to be used in the production process, and for whom the output is produced. B. Only for whom the output is produced and the mix of output to be produced. C. Only the resources to be used in the production process and for whom the output is produced. D. Only the mix of output to be produced and the resources to be used in the production process.