Government actions that create monopolies
A) spur product innovation by the monopoly.
B) create deadweight loss.
C) result in lower average costs of production.
D) ensure that firms price at marginal cost.
B
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If the exchange rate between yen and dollars were 120 yen per dollar, when an American purchases a good valued at 600 yen, its cost in dollars would be: a. $5
b. $600. c. $72,000. d. $120.
In an oligopoly, advertising: a. allows a firm to sell any quantity it wishes
b. shapes consumers' preferences. c. shapes perceived demand for a price taker. d. allows a firm to raise the prevailing market price.
Which of the following best measures improvements in the standard of living of a nation?
A. Growth of nominal GDP. B. Growth of real GDP. C. Growth of real GDP per capita. D. Growth of national income.
Refer to the Economics in Practice on page 360. Advertisements provide information in two ways-what they say and what they omit.
Answer the following statement true (T) or false (F)