Opening an industry to international competition tends to:
A. increase the incidence of lazy monopolists.
B. force lazy monopolists to increase efficiency.
C. increase X-inefficiency.
D. raise a monopolist's profit as the price is driven up.
Answer: B
You might also like to view...
Refer to Figure 16-1. Suppose the economy is in short-run equilibrium below potential GDP and no fiscal or monetary policy is pursued. Using the static AD-AS model in the figure above, this would be depicted as a movement from
A) A to E. B) A to B. C) B to A. D) B to C. E) C to B.
The welfare effects of a quota depend, to considerable extent, upon
A) who has the quota license. B) the size of the quota. C) elasticities of domestic demand and supply. D) all of the above.
One factor which may be helping to raise our rate of productivity growth is our
A. improving computer literacy rate. B. improving educational system. C. rising rate of saving. D. declining rate of immigration.
Which of the following headlines would be more closely related to what macroeconomists study than what microeconomists study?
A) Avocado prices rise due to a late frost in California. B) The United Auto Workers sign a contract raising wages and benefits 7% over the next 3 years. C) Real GDP grows by 2.3% in the second quarter. D) Airlines raise ticket prices in response to rising fuel costs.