The key reason that the bursting of the tech-stock bubble of the late 1990s had a mild impact on the macroeconomy is ________
A) rapid intervention by the central bank averted economic catastrophe
B) the increase in tech-stock prices was driven by the economic fundamental of technological progress
C) the technology sector is a rather small portion of the aggregate economy
D) tech-stock prices had not been much influenced by credit availability
D
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A perfectly competitive industry achieves allocative efficiency in the long run. What does allocative efficiency mean?
A) Firms use an input combination that minimizes cost and maximizes output. B) Each firm produces up to the point where all scale economies are exhausted. C) Each firm produces up to the point where the price of the good equals the marginal cost of producing the last unit. D) Production occurs at the lowest average total cost.
Under the Clayton Act, which of the following was illegal, even if it was not shown to lessen competition substantially?
a. Price discrimination. b. Tying contract. c. Horizontal mergers by stock acquisition. d. Interlocking directorates.
A profit maximizing monopolist always chooses to operate at the output level where
A. P = MR = MC. B. MR = MC = AC. C. P > MR = MC. D. P < MC = MR.
Each country in NAFTA sets its own tariffs to the rest of the world.
a. true b. false