One strategic barrier that may keep new firms out of a market is
a. producing where marginal cost equals marginal revenue
b. a low minimum efficient scale
c. bounded markup pricing
d. efficiency wages, which may make it impossible for new entrants to compete profitably
e. excess capacity, which may serve as a signal to new entrants to stay away
E
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According to general trends in the incidence of unemployment across different demographic groups in the United States, which of the following groups have the lowest unemployment rates in the country?
a. Asians b. Hispanics c. Whites d. Nonwhites e. Latinos
Refer to Sales Tax. After the tax is imposed, the deadweight loss is equal to
The following questions refer to the accompanying diagram which shows the effects of a sales tax imposed on consumers. The initial price and quantity are P0 and Q0, respectively. After the tax is imposed, the equilibrium quantity is Q1, firms receive the price Ps, and consumers pay the price Pd.
a. area A + D + G.
b. area F + G + H.
c. area E + H.
d. area E + H + J.
The narrowly-defined money supply in the U.S., called M1, does not include which of the following?
A) Coins in circulation B) Currency in circulation C) Currency in the vaults of commercial banks D) Demand deposit liabilities of commercial banks
Which of the following domestically produced items is not included in GDP?
a. a bottle of shampoo b. a hairdryer c. a haircut d. All of the above are included in GDP.