In which of the following market structures do you find barriers to entry?
A. a monopoly
B. a perfectly competitive market
C. a monopolistic competition
D. Both a monopoly and a perfectly competitive market are correct
Answer: A
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Monetary payments a firm makes to pay for resources are called
A. explicit costs. B. implicit costs. C. opportunity costs. D. normal profit.
What is the difference between retained earnings and dividends?
What will be an ideal response?
Which of the following is most likely a topic of discussion in economics?
a. Families must decide whether to spend their money on a new car or a fancy vacation. b. Nations must choose whether to put more of the budget into police and fire protection or into the school system. c. Towns must choose whether to put more of the budget into police and fire protection or into national defense. d. Nations must decide whether to devote more funds to national defense or to police and fire protection.
Maggie is trying to convince her friend Hannah to spend the morning at the beach instead of studying economics. Maggie’s argument is that the beach is free so will not cost Hannah anything to go. Maggie even volunteers to drive. Maggie’s argument
a. is correct; it is free to go to the beach. b. is forgetting Hannah’s opportunity cost of not being able to study. c. assumes Hannah has to eat at home or the beach so it will not cost Hannah additional money. d. is forgetting sunk costs.