The owner of a garage makes large contributions to a politician who is seeking the office of state governor. If his candidate wins, he will get the contract, which now resides with a competitor, to repair State Police vehicles. This is an example of
A. moral hazard.
B. externality.
C. rent seeking.
D. investment.
Answer: C
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A firm that is the only seller of a product and is in sole control of a market has a
A) monopoly. B) quantity regulations. C) subsidy. D) public good.
Which of the following explains why economists may disagree over normative issues?
a. They have different beliefs and values. b. They examine the same data to draw their conclusions. c. They need to disagree in order to publish their research findings. d. They often employ different statistical techniques when examining data. e. Some work only on microeconomic issues, while others focus exclusively on macroeconomic issues.
If the Fed increases the money supply and people fully anticipate this change, they will immediately incorporate the disinflationary impact of the Fed's policies into their current wage and price decisions
a. True b. False Indicate whether the statement is true or false
Which of the following is NOT a necessary condition for oligopoly?
A) barriers to entry B) strategic dependence of firms C) differentiated products D) either a small number of firms or market dominance by a small number of firms