Natural resources are resources that occur in nature, while capital is a produced good that is used to produce another good.
a. true
b. false
Ans: a. true
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The unemployment rate is the
A) percentage of employed people that does not have a job. B) number of unemployed people. C) percentage of the working-age population that does not have a job. D) percentage of the labor force that does not have a job. E) percentage of the population that does not have a job.
The U.S. government's focus on supply reduction efforts in its "war on drugs" has been relatively unsuccessful at addressing illegal drug use
Some economists believe that a successful anti-drug program must concentrate on reducing demand; for example, through drug education and voluntary treatment programs for addicts. a. What will happen to the equilibrium price, quantity, and total revenue from cocaine sales if the government succeeds in its efforts to reduce demand? What is likely to happen to the incentive to sell cocaine? b. Suppose the government continues to concentrate its efforts on supply reduction and is able to reduce the supply of cocaine. As a result of the reduction in supply the price of cocaine increases by 25 percent. If the price elasticity of demand is -0.5, what is likely to happen to the incentive to sell cocaine? c. Based on your answers, explain why one approach might be preferred over the other.
Which of the following would force a monopoly to charge a lower price?
A) A new firm selling the same enters the market. B) A new firm selling the same product locates close to the monopoly. C) A new firm introduces a better substitute for the firm's product. D) All of the above.
Which of the following is NOT an example of a barrier to entry?
A. Rare natural minerals B. Heavy government regulations C. Lower costs D. Scarce land