If the government limits the number of firms in a market by issuing a limited number of licenses, the market structure is most likely to be:
A. a perfectly competitive market.
B. a monopoly.
C. a monopolistically competitive market.
D. an oligopoly.
Answer: D
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Which of the following is a basic difference between the classical model and the Keynesian model in which the Keynesian short-run aggregate supply curve exists?
A) The classical model assumes that the long run aggregate supply curve is vertical, while the Keynesian model assumes the long run aggregate supply curve is horizontal. B) The classical model assumes that the position of the long run aggregate supply curve is determined by full employment, while the Keynesian model assumes that the long run aggregate supply curve will be to the left of full employment. C) The classical model assumes that the level of real GDP is supply determined, while the Keynesian model assumes that it is demand determined. D) The classical model uses real GDP, while the Keynesian model uses nominal GDP.
Which of the following factors tends to lower the average wages for women?
a. Women leaving the workforce to raise their children b. Women receiving less than one-third of all advanced degrees c. Fewer women earning college degrees than in the past d. Fewer women seeking experience in the service industry
The Bumpy Ride Suspension company makes springs for bicycle seats. Currently the springs sell for $5 each. Being profit maximizers, the company makes just enough springs so that the marginal cost of the last spring produced is $5 . Their average total
cost at that output is $3.50 . If they currently produce 1,000 springs and the market price falls by $1, approximately how much profit will be lost? a. all of the profit will be lost b. profit will fall by $1 per spring c. there will be no loss of profit d. more than $1,000 but less than $1,500 e. less than $1,000
In the early 1980s, the government used fiscal policy to fight a recession by ______.
a. increasing tax rates b. lowering tax rates c. limiting government spending d. suspending unemployment benefits