Which of the following provides the most secure protection for a firm with monopoly power?
a. quality advertising
b. legal barriers restricting entry into the market of the monopolist
c. predatory pricing
d. limited economies of scale
B
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Which of the following would be most likely to encourage households to save a greater proportion of their income?
a. a reduction in the sales tax rate b. an increase in the capital gains tax rate c. an elimination of tariffs (taxes on imported goods) d. changing to a flat income tax (with a single tax rate charged on all income) e. changing from an income tax to a consumption tax
_______% of the people on welfare lives below the poverty line.
Fill in the blank(s) with the appropriate word(s).
What is the role of nongovernmental organizations in promoting labor standards?
a. They have no enforcement power, but they can investigate and bring attention to and put pressure on firms, governments, and other groups to effect change. b. Because they are nongovernmental, they have no power. c. They can change laws for labor in many situations. d. Because they are part of the United Nations, they often report their findings and cause major policy changes.
The opportunity cost of an activity means the:
A. amount of money the activity costs. B. expected gains minus the expected costs of engaging in the activity. C. expected gains by engaging in the activity. D. amount of other things that must be sacrificed in order to engage in the activity.