Which of the following best describes real-world U.S. markets?
a. In most markets, the firms face steep demand curves for their output.
b. They combine characteristics of monopolistic competition, oligopoly, and monopoly.
c. Effective competition exists in only about 25 percent of those markets.
d. The dominant share of U.S. manufacturing output is produced by firms with the power to vary their prices over a wide range.
e. Perfect competition is useful as a model for very few U.S. markets.
B
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Which of the following statements regarding patents is false?
A) Patents can help firms gain market power through innovation and then act as a barrier to entry. B) A firm that has market power as a result of a patent may be more likely to innovate than a perfectly competitive firm. C) Patents encourage the production of information, which might otherwise be under supplied. D) Patents can last for an indefinite time period.
Most surveyed economists support Fogel and Engerman's (1974) position that plantation owners were largely rational and treated slaves in their best profit interest
Indicate whether the statement is true or false
Dean should play golf instead of preparing for tomorrow's exam in economics if:
A. he is irrational. B. Dean can play golf for free. C. the economic surplus from playing golf is greater than the economic surplus from studying. D. the benefit of golfing is greater than the benefit of studying.
Which of the following statements about the Earned Income Tax Credit Program (EITC) program is FALSE?
A. It is the largest poverty reduction program in the U.S.. B. It provides rebates of Social Security taxes to low-income workers. C. On net the EITC discourages work by low- or moderate- income earners more than it rewards work. D. Recipients who receive benefit payments under Social Security are also eligible for SSI.