Antitrust laws have economic benefits that outweigh the costs if they
a. prevent mergers that would decrease competition and lower the costs of production.
b. prevent mergers that would decrease competition and raise the costs of production.
c. allow mergers that would decrease competition and raise the costs of production.
d. None of the above is correct because antitrust laws never have economic benefits that outweigh the costs.
b
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Is monetary policy more effective in recessions or inflationary periods? Explain
An increase in the reserve ratio would tend to
a. increase excess reserves and raise the money multiplier. b. decrease excess reserves and decrease the money multiplier. c. increase excess reserves and decrease the money multiplier. d. decrease excess reserves and raise the money multiplier.
Which of the following is NOT a characteristic of a monopolistically competitive market?
A. There are many firms. B. Firms sell differentiated products. C. Firms have control over price. D. There are substantial barriers to entry.
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4According to Figure 2.4, as the economy moves from Point E to Point A, the opportunity cost of hybrid cars, measured in terms of motorcycles
A. increases. B. initially increases, then decreases. C. decreases. D. remains constant.