A contestable market is
A. An imperfectly competitive situation that is subject to entry.
B. An imperfectly competitive situation with high barriers to entry.
C. A market with only one producer.
D. A perfectly competitive market.
Answer: A
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A) between 20 percent and 30 percent. B) between 51 percent and 70 percent. C) more than 71 percent. D) between 31 percent and 50 percent. E) less than 20 percent.
If the nominal interest rate is 8 percent and the current inflation rate is 3 percent, approximately what is the real interest rate?
A) 11 percent B) 8 percent C) 5 percent D) 3 percent
If GDP grew 3% in 1970, 2.2% in 1971 and 2.5% in 1972 then, what is the average annual growth rate over this period?
A) 5% B) 4% C) 2.6% D) -2.2%
If government sets price supports on agricultural goods that are above equilibrium prices, what must the government do to maintain those prices?