Which answer best describes how economists suggest we deal with monopolies and oligopolies?
a. We should regulate them all until the markets become competitive.
b. We should leave them alone.
c. Those firms should be nationalized.
d. We should fully enforce all antitrust laws.
e. There is no consensus among economists on this issue.
E
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Figure 11-1
The Red Cross is virtually the only operator of blood banks in the United States. In Figure 11-1 are the demand and supply curves facing the Red Cross blood bank. If it were to operate like a profit-maximizing business, how many units of blood would it sell?
A. OA B. OB C. OC D. OD
If the government's provision of a subsidy is too small to counteract the entire effect of a positive externality, the:
A. quantity consumed will still be too low. B. quantity consumed will still be too high. C. total surplus will be maximized, but the outcome will be inefficient. D. total surplus will not be maximized, but the outcome will be efficient.
Fourteen years ago William put money in his account at First National Bank. William decides to cash in his account and is told that his money has quadrupled. According to the rule of 70, what rate of interest did Alfred earn?
a. 5 percent b. 7 percent c. 10 percent d. 14 percent
Many financial instruments are standardized because:
A. it is believed that most parties to a contract do not read them anyway. B. the standardization of contracts makes them harder to understand. C. it is required by the government. D. complexity is costly, the more complex a contract, the more it costs to create.