If there is a sole producer of a good, and he faces no threat of competition, it is likely that:
A. government intervention will have no impact on the market.
B. government intervention will raise prices to consumers.
C. government intervention will increase total surplus.
D. government intervention will make things better for buyers and sellers.
C. government intervention will increase total surplus.
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In the coordination failure model, the most likely explanation of business cycles are
A) money supply shocks. B) government spending shocks. C) total factor productivity shocks. D) fluctuations between "good" and "bad" equilibria.
Which of the following statements is false?
a. Marginal analysis is an examination of the effects of additions or subtractions from a current situation. b. The production possibilities curve shows the maximum combination of two outputs that an economy can produce, given its available resources and technology. c. Technology is the body of knowledge and skills applied to how goods are produced. d. Economic growth is illustrated as an inward shift of the production possibilities curve.
In a market economy, _____ own(s) all the basic resources or factors of production
a. households b. the federal government c. the Federal Reserve bank d. the local government e. business firms
As a price setter, a monopoly
a. can establish any price it wants for each output level b. can sell any output level it wants for each price c. is constrained by the market demand curve d. can use its pricing policy to shift the market demand curve e. faces an upward-sloping demand curve for its output