A . What is the theory of creative destruction? b. According to this theory, do we need to worry about the fact that our local power utility has a monopoly in the provision of electricity?
a . This is the idea that, although it may be difficult for firms to break into a monopolized industry, it is
less difficult for them to break the monopolized industry's hold on a market by offering a
technologically superior alternative to consumers.
b. No, because technological change might be a very effective regulator of monopoly power over the
long run. Although it is hard to compete against the local utility with a given level of technological
knowledge, it may be less hard to compete once technology improves.
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Real wages increased in industrialized countries in the twentieth century because the demand for labor:
A. increased more slowly than the supply of labor increased. B. decreased, while the supply of labor increased. C. increased more rapidly than the supply of labor increased. D. increased, while the supply of labor decreased.
Across developed and newly industrialized economies, since 1989 the United States has generally had
A) a higher unemployment rate than Japan and Hong Kong and a lower unemployment rate than the Eurozone countries. B) a lower unemployment rate than Japan and Hong Kong. C) a higher unemployment rate than the Eurozone countries. D) the same unemployment rate as Canada. E) a lower unemployment rate than Hong Kong and a higher unemployment rate than Japan and the Eurozone countries.
Which of the following can bring about a change in the quantity demanded?
a. Change in supply. b. Change in quality. c. Change in income. d. Change in product price. e. Change in taste.
Capital gains tax cuts inevitably benefit
A. low-income workers. B. retired persons. C. workers in large cities. D. high-income stock owners.