Why is voluntary exchange an important source of economic prosperity?
a. It moves goods from people who value them less to people who value them more.
b. It makes it possible to produce a larger output as a result of lower per unit costs that often accompany large-scale production.
c. It makes it possible to produce a larger output as a result of gains from division of labor and specialization.
d. All of the above are correct.
d. All of the above are correct.
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Samuel Slater is most recognized for:
a. inventing the cotton gin. b. inventing the telegraph. c. lobbying the government for the abolition of slavery. d. playing an integral role in developing the first American factory.
Answer the following statements true (T) or false (F)
1. A major characteristic of a monopoly is the ability of the monopolist to influence price. 2. A monopolist must produce a good for which there are no close substitutes. 3. U.S. patents grant a lifetime monopoly on an invention. 4. Public utilities are often called natural monopolies. 5. No U.S. firm has ever obtained sufficient control over raw materials to develop a monopoly or near monopoly on that basis.
For a fixed money supply, a higher level of real balances implies
A. a higher price level. B. a lower price level. C. higher velocity of money. D. lower velocity of money.
Which of the following is TRUE?
A) The MC curve intersects AFC at its minimum point. B) If MC is below AVC, AVC must be increasing. C) If MC is above ATC, ATC must be increasing. D) none of the above