A natural monopoly exists when
A. increasing marginal returns and the ability to obtain quantity discounts from suppliers leads to a single-firm industry.
B. control of a key input leads to a single-firm industry.
C. economies of large-scale production are substantial, leading to a single-firm industry.
D. the government restricts entry that leads to a single-firm industry.
Answer: C
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The opportunity cost of economic growth is ________ and the benefit of economic growth is ________
A) increased current consumption; increased future consumption B) increased current consumption; decreased future consumption C) decreased current consumption; increased future consumption D) decreased current consumption; decreased future consumption E) nothing; increased future consumption
A zero-sum economy would result from
A. moderate economic growth. B. excessive growth after adjusting for inflation rates. C. a lack of economic growth. D. nominal GDP growth.
If you invest $10,000 in a bond that earns 8% interest per year, how many years will it take to double your money?
A) 1 year and 3 months B) 2 years and 6 months C) 8 years D) 8 years and 9 months
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4According to Figure 2.4, as the economy moves from Point B to Point D, the opportunity cost of motorcycles, measured in terms of hybrid cars,
A. increases B. remains constant. C. initially increases, then decreases. D. decreases.