Which of the following can be a barrier to entry, closing a market to new firms?
A) an elastic industry demand curve
B) control of a vital resource by one producer
C) diseconomies of scale
D) ease of obtaining capital financing
B
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The multiplier effect applies to any
A) change in any source of spending other than consumption and investment. B) change in autonomous consumption but not autonomous investment. C) change in both autonomous consumption and autonomous investment. D) change in autonomous investment but not autonomous consumption.
If all the assumptions underpinning the policy irrelevance proposition are in place, fully anticipated monetary policy will
A) affect the unemployment rate but have no impact on the level of real Gross Domestic Product (GDP). B) have an impact on real Gross Domestic Product (GDP) but cannot alter the level of unemployment. C) effectively alter both the rate of unemployment and the level of real Gross Domestic Product (GDP). D) not change either the level of real Gross Domestic Product (GDP) or the unemployment rate.
Exhibit 11-10 Labor and wage rate data Labor Wage 6 $12 7 13 8 14 9 15 10 16 In Exhibit 11-10, the marginal factor cost of the 8th employee is:
A. $14. B. $13. C. $21. D. $112.
The return on wealth is
A. a stock or flow variable depending upon whether the wealth is in the form of bonds or other financial assets. B. income. C. a stock variable. D. equal to the opportunity cost of holding capital.