The aggregate supply curve is
a. generally flatter as the level of resource use rises.
b. never vertical, even at full employment.
c. relatively flat at low levels of output.
d. relatively steep at low levels of output.
c
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For the tragedy of the commons to occur, property rights must be clearly defined and enforced
Indicate whether the statement is true or false
An important market for overnight borrowing and lending is the
A) commercial paper market. B) repo market. C) Treasury bill market. D) Treasury bond market.
A good that is both nonexcludable and nonrival-in-consumption is called a
a. common good. b. external good. c. public good. d. private good.
Consider an incumbent that is a monopoly currently earning $1 million annually. Given the declining costs of raw materials, the incumbent believes a new firm may enter the market. If successful, a new entrant would reduce the incumbent's profits to $750,000 annually. To keep potential entrants out of the market, the incumbent lowers its price to the point where it is earning $850,000 annually for the indefinite future. If the interest rate is 5 percent, does it make sense for the incumbent to limit price to prevent entry?
A. No, since $5 million > $100,000. B. Yes, since $2 million > $150,000. C. Yes, since $150,000 > $5 million. D. No, since $2 million > $150,000.