If you own the only bookstore in a small town, do you have a monopoly?
What will be an ideal response?
Because consumers in your town could buy books on the Internet or by driving to another town that has a bookstore, you would not have a monopoly under the narrow definition of the term. However, because competition from on-line sellers and stores in other towns may not be sufficient to eliminate your economic profits in the long run, you may have a monopoly in the broader sense of the term.
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A rent ceiling set above the equilibrium rent has no effect
Indicate whether the statement is true or false
The tendency for declines in economic activity to be followed by further declines, and for growth in economic activity to be followed by more growth is called
A) persistence. B) comovement. C) periodicity. D) recurrence.
What is normally the ultimate cause of hyperinflation?
What will be an ideal response?
The concepts of comparative advantage, specialization, and trade form a compelling argument in favor of:
A. free trade. B. protectionism. C. self-sufficiency. D. only exporting goods and not importing goods.