Market power is illegal
A) True, no one is allowed to charge a price greater than marginal cost.
B) False.
C) True, no one is allowed to charge a price greater than average cost.
D) False, because market power guarantees price equal to average cost.
B
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In the Hotelling model of spatial competition, profits arise from:
a. monopoly power. b. rents based on locational advantage. c. the ability to price discriminate. d. increasing returns to scale.
An example of a social insurance program offered in the United States is:
A. Police and Firefighters. B. Social Security. C. Progressive taxation. D. All of these are examples of social insurance programs.
Which statement is true?
A. GDP can never be greater than NDP. B. NDP can never be greater than GDP. C. GDP and NDP are always equal. D. None of the statements are true.
An increase in household saving causes consumption to
a. rise and aggregate demand to increase. b. rise and aggregate demand to decrease. c. fall and aggregate demand to increase. d. fall and aggregate demand to decrease.