In terms of industrial policy, clusters refer to:
A. networks of interdependent firms, universities, and businesses that focus on production of a specific type of good.
B. firms in an economy that are so interconnected, when one fails, they all fail.
C. the industries supported in a country practicing export-led growth policy.
D. the industries supported in a country practicing import substitution policy.
A. networks of interdependent firms, universities, and businesses that focus on production of a specific type of good.
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What does monopolistic competition have in common with perfect competition?
A) a large number of firms and freedom of entry and exit B) a standardized product C) product differentiation D) the ability to earn an economic profit in the long run E) barriers to exit but no barriers to entry
What would happen to a production possibilities frontier (with capital goods measured on the vertical axis and consumption goods on the horizontal axis) if there is an increase in the labor force?
a. The entire frontier would shift outward. b. The upper part of the frontier would shift outward while the lower part would shift inward. c. Nothing, there would be no movement of the frontier. d. The entire frontier would shift inward. e. The lower part of the curve would shift outward while the upper part would shift inward.
The presence of large sunk costs often serves as a naturally imposed barrier to entry.
Answer the following statement true (T) or false (F)
If the federal government were to run a budget deficit, this would:
A. increase the size of the national debt. B. reduce the size of the national debt. C. leave the size of the national debt unchanged. D. increase the national debt only if the government also expands the supply of money.