Which of the following is a valid effect of monopoly power?
a. Desirable effects on the distribution of wealth.
b. Efficient resource allocation.
c. Fostering of innovation.
d. Obstacle to efficiency.
d
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The Argentinian crisis of 2001 was characterized by:
A. increasing interest rates. B. international investors losing confidence and shifting the demand for loanable funds to the right. C. government debt becoming more expensive, shifting savings to the left. D. All of these statements are true.
Holding all else constant, an increase in Mexican real GDP will ________ the demand for dollars in the foreign exchange market and ________ the equilibrium Mexican peso/U.S. dollar exchange rate.
A. increase; decrease B. decrease; increase C. increase; increase D. decrease; decrease
The Great Depression ________
A) was largely confined to the United States B) was largely confined to European markets C) was largely confined to Asian markets D) was worldwide in scope
The local government is holding an auction for a contract to build a new multi-deck parking lot downtown. If the government has a policy to release its own cost estimates of the work to the auction participants, the participants will have ________ confidence in their own cost estimates and will submit ________ bids.
A) less; lower B) more; lower C) less; more D) more; higher