"Intel Inside" accompanies virtually all IBM-compatible computers. Intel manufactures the Celeron and Pentium chips that are a key component of personal computers. Does Intel have a monopoly?
To be a monopoly, a firm must not only be the sole producer in the industry, but there must be no close substitutes for the product and no viable potential competitor. While Intel comes close to being the only chip maker, there may well be potential competitors. At least one other company is vying for the chip market, so Intel must innovate or lose its monopoly status. In any case, there is no overwhelming reason why Intel will ward off all future competitors.
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Changes in business inventories are not considered part of gross private domestic investment spending
Indicate whether the statement is true or false
In the money market, if the money supply decreases, the opportunity cost of holding money: a. decreases and the quantity of money demanded increases
b. decreases and the quantity of money demanded falls. c. increases and the quantity of money demanded falls. d. increases but the quantity of money demanded remains unchanged. e. increases and the quantity of money demanded also increases.
Figure 9-4
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In Figure 9-4, if the economy faces an inflationary gap, what must happen to reach potential GDP?
A. The expenditure level must rise and/or the price level must rise. B. The expenditure level must rise and/or the price level must fall. C. The expenditure level must fall and/or the price level must fall. D. The expenditure level must fall and/or the price level must rise.
Which of the following statements best characterizes Say’s law?
a. Supply does not automatically create an adequate demand. b. Wages and prices are inflexible downward. c. All income generated from output is used to buy goods and services. d. Full employment cannot be maintained for a long period of time.