Assume the production of a particular good is characterized by significant economies of scale. In addition, three different versions of the good can be produced, and large segments of the population prefer different versions of the good
In this case, the preferred market structure for this good would be: A) perfect competition.
B) monopoly.
C) monopolistic competition.
D) oligopoly.
D
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The advantage of using real GDP over nominal GDP is that:
A) it can be compared over time. B) it takes into account the distribution of income. C) it takes into account changes in ruling political party. D) it is easier to calculate.
Ultimately, quotas ________ prices for imported goods and ________ prices for domestic goods
A) raise; raise B) raise; lower C) raise; do not affect D) do not affect; do not affect
If, at the current exchange rate between the dollar and the South African rand of 6.92 rand per dollar, the rand is "undervalued," how do you expect demand and supply in the foreign exchange markets to respond?
A) The supply of the dollar will rise, while the demand for the rand will fall. B) The supply of the dollar will rise, while the demand for the rand will rise. C) The demand for the dollar will rise, while the supply of the rand will fall. D) The demand for the dollar will fall, while the supply of the rand will rise.
When the monopoly insurer cannot observe the care taken by the insured party to avoid an accident, the most profitable contract for it:
a. offers full insurance at a higher price than the full-information policy. b. offers full insurance at a lower price than the full-information policy. c. offers partial insurance at a higher price than the full-information policy. d. offers partial insurance at a lower price than the full-information policy.