An important condition for a contestable market is:
A. all producers have different technologies.
B. there are sunk costs.
C. there are high transaction costs.
D. existing firms cannot respond quickly to entry by lowering their price.
Answer: D
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Walter Raleigh was an explorer from _____
a. England b. France c. Holland d. Portugal e. Spain
The federal government and many state governments gave tax credits to first-time home buyers in 2009 and 2010. An effect of these tax credits was to
A) make the price of houses higher than they would have been without the tax credit. B) lower house prices. C) shift the demand curve for houses leftward. D) b and c E) none of the above
One reason why the aggregate supply curve might shift to the left is that:
A. businesses have become more optimistic. B. consumer incomes have increased. C. per-unit production costs have increased. D. government spending has increased.
Suppose the economy is initially experiencing a recessionary ga
A) a reduction in the size of the recessionary gap and increase in real GDP. B) an increase in the size of the recessionary gap and decrease in real GDP. C) an inflationary ga