There are only two justifications for monopoly: ______________ and ______________.
A. economies of scale; natural monopolies
B. economies of scale; patents
C. natural monopolies; patents
D. imperfect competition; being established
A. economies of scale; natural monopolies
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Which of the following is correct?
a. If developing countries limit career and educational opportunities for women, birth rates are likely to be lower. b. Growth rates in developed and developing countries are nearly the same. c. Historically, in periods where the rate of population growth was high, so was the rate of growth in world real GDP per person. d. None of the above is correct.
Suppose that individuals with state-independent and risk-averse tastes insure each other through state-contingent trades. The competitive equilibrium price will then result in actuarily fair insurance terms.
Answer the following statement true (T) or false (F)
By the 2000s, an important market change occurred when investment banks became significant participants in the secondary market for
A) corporate bonds. B) currency. C) mortgages. D) Treasury securities.
Exhibit 10-7 Aggregate supply and demand curves
In Exhibit 10-7, the aggregate demand and supply curves reflect an economy in which:
A. full employment is at $1,000 billion GDP. B. excess aggregate supply is created when there is a shift from AD1 to AD2. C. excess aggregate demand forces prices up to P = 120. D. excess aggregate demand causes prices to stabilize at P = 110.