Which of the following is the best example of a natural monopoly?
A) ownership of the only ferry across Puget Sound for twenty miles
B) the United States Postal Service
C) the cable television company in your hometown
D) owning the only licensed taxicab in town
E) producing a patented drug
C
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In a study session, your friend says, "Demand is elastic if the percentage change in the price exceeds the percentage change in quantity demanded." Is your friend correct?
What will be an ideal response?
Which of the following assertions is not correct about the multilateral approach to free trade?
a. The multilateral approach has the potential to result in freer trade than does the unilateral approach. b. The multilateral approach may have a political advantage over the unilateral approach. c. The multilateral approach is simpler than the unilateral approach. d. NAFTA and GATT both represent multilateral approaches to free trade.
Refer to Table 3.1. Suppose that you have a house that you rent out. If you keep the lawn maintained, you can charge a higher monthly rent for the house. If your hourly wage rises from $25 to $35, what happens to the number of hours per week you spend maintaining the lawn?
A. They fall by 4 hours.
B. They fall by 8 hours.
C. They fall by 12 hours.
D. They don't change.
If the stock market crashes, then
a. aggregate demand increases, which the Fed could offset by increasing the money supply. b. aggregate demand increases, which the Fed could offset by decreasing the money supply. c. aggregate demand decreases, which the Fed could offset by increasing the money supply. d. aggregate demand decreases, which the Fed could offset by decreasing the money supply.