Which of the following is an example of natural monopoly?
A. a market for cable TV services
B. a market for breakfast cereals
C. a market for cold medicines
D. a market for cigarettes
Answer: A
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Free trade is better than autarky for a small country
Indicate whether the statement is true or false
The production function is concave in labor because
A) the contribution to production of each additional unit of labor decreases. B) the marginal product of labor is increasing. C) the marginal product of capital is decreasing. D) the labor demand is downward sloping.
Imagine that Odyssey National is a brand new bank, and that its required reserve ratio is 10 percent. If it accepts a $1,000 deposit, then its excess reserve balance will be:
a. $0. b. $90. c. $100. d. $900. e. $910.
The economy will move to a point on the short-run Phillips curve where unemployment is higher if
a. the inflation rate decreases. b. the government increases its expenditures. c. the Fed increases the money supply. d. None of the above is correct.