A natural monopoly is
A. A monopoly that always benefits society even when it is unregulated.
B. An unregulated monopoly.
C. An industry in which one firm can achieve economies of scale over the entire range of market supply.
D. An industry that is dominated by a single firm.
Answer: C
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When the Patient Protection and Affordable Care Act is fully implemented, it will
a. substantially reduce the share of health care expenses paid by a third party. b. require individuals to pay an annual tax-penalty of up to $695 if they do not have an approved health insurance plan. c. require firms with fewer than 50 employees to provide health insurance for their workers. d. make it legal for individuals to purchase health insurance from an insurer in another state.
The basic concept behind strategic trade policy is that free trade is the best policy to pursue, but some countries don’t play by those rules. Therefore,
A. it makes no sense to engage in trade at all, and it makes sense to be self-sufficient. B. it makes sense to restrict imports of items that are of military significance in order to maintain a strong defense posture. C. it makes sense to threaten to protect markets unless other nations agree to open theirs. D. it makes no sense to export items of strategic importance to other nations, because they should make them on their own.
The leverage ratio is the ratio of a bank's
A) assets divided by its liabilities. B) income divided by its assets. C) assets divided by capital. D) capital divided by its total liabilities.
One concept that behavioral economists use to account for procrastination is:
A. the fungibility of money. B. thinking inconsistently about prices. C. framing bias. D. the time inconsistency of our decision-making.