Suppose you can fly from LA to New York, and 15 separate airlines provide the service. This market would be described by
A. oligopoly.
B. monopolistic competition.
C. limited competition.
D. monopoly.
Answer: B
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Suppose that a worker in Country A can make either 10 iPods or 5 tablets each year. Country A has 100 workers. Suppose a worker in Country B can make either 2 iPods or 10 tablets each year. Country B has 200 workers. A bundle of goods that Country A could not make would be:
A. (500 iPods, 150 tablets). B. (500 iPods, 200 tablets). C. (500 iPods, 250 tablets). D. (500 iPods, 300 tablets).
Economists use the phrase "business cycle" when referring to fluctuations in
a. the rate of real output and employment. b. interest rates. c. the consumer price index. d. the general level of prices.
At Rick’s Trailer Trove, Rick’s buddy Theodore convinces him to extend production of trailers beyond the current production level in order to gain more producer surplus. This strategy will work if ______.
a. current production exceeds the equilibrium point b. current production is at the equilibrium point c. the cost of the additional output exceeds what the buyers will pay for it d. the cost of the additional output is less than what the buyers will pay for it
Population growth is always a source of economic growth, regardless of other circumstances.
a. true b. false