A barrier to entry is
A. the situation when the government produces a good instead of relying on private firms to produce the good.
B. a term used to explain why monopolies always make economic profits.
C. a restriction on the profits that a monopoly can make.
D. a restriction on starting a business.
Answer: D
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If the number of people unemployed is 100, the number of people employed is 1000, and the working-age population is 1400, then the labor force is
A) 1000. B) 1100. C) 1400. D) 1500.
Suppose the Inkuyo family invests in the local bottling corporation. Albert, Brad, Carol, and Diana each invest separately. At the end of a very successful quarter, Carol and Brad receive a payment from the corporation equal to 10 percent of their investment. Albert receives 7 percent, but is paid before Carol or Brad. Diana receives 6 percent. If Diana receives her money before Albert, she must
have invested in a. common stock b. preferred stock c. convertible stock d. corporate bonds e. low-yield dividends
When would sunk costs be irrelevant for current decision making?
a. when the sunk costs are computed using accounting methods b. when the sunk costs are greater than variable costs c. when the sunk costs have been incurred only a short time ago d. Sunk cost are always irrelevant when making current decisions.
Suppose that the bond market and the money market start out in equilibrium. Explain the process by which the interest rate and the price of bonds will change as a result of the Fed increasing the money supply