A natural monopoly is a market where:
a. a single firm has control over a vital natural resource.
b. many smaller firms can produce the entire market output at the same per-unit cost as could one large firm.
c. a single large firm can produce the entire market output at a lower per-unit cost than a group of smaller firms.
d. many smaller firms can produce the entire market output at a lower per-unit cost than could one large firm.
c
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Declines in spending on residential construction are often due to increases in interest rates. The collapse in residential construction prior to and during the recession of 2007-2009 was due more to ________ than to higher interest rates
A) the financial crisis that began in 2007 B) rising wages in the construction industry C) the rapid inflation of the early 2000s D) increases in the price of lumber
Refer to Figure 2-9. Carlos Vanya grows tomatoes and strawberries on his land. His land is equally suited for growing either fruit. Which of the graphs in Figure 2-3 represents his production possibilities frontier?
A) Graph A B) Graph B C) Graph C D) either Graph A or Graph B E) either Graph B or Graph C
Suppose the government's budget deficit increases by $500 billion. If there is no Ricardo-Barro effect, what occurs?
A) The supply of loanable funds curve shifts leftward, the real interest rate rises, and the quantity of loanable funds decreases. B) The supply of loanable funds curve shifts rightward, the real interest rate falls, and the quantity of loanable funds increases. C) The demand for loanable funds curve shifts rightward, the real interest rate rises, and the quantity of loanable funds increases. D) The demand for loanable funds curve shifts leftward, the real interest rate falls, and the quantity of loanable funds decreases. E) The supply of loanable funds curve shifts leftward, the real interest rate rises, and the quantity of loanable funds increases.
The actions of buyers and sellers naturally move markets toward equilibrium
a. True b. False Indicate whether the statement is true or false