How would a decrease in lumber prices influence the home construction market?
a. The demand for newly constructed homes will increase.
b. The demand for newly constructed homes will decrease.
c. The supply of newly constructed homes will increase.
d. The supply of newly constructed homes will decrease.
C
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Regulators usually encourage natural monopolists to engage in
A) marginal cost pricing. B) average cost pricing. C) marginal cost pricing, with subsidies from the government offsetting the losses. D) inefficient pricing.
Antitrust policy is used to describe government policies and programs that are designed to:
a. promote the creation of trusts, or combinations of independent firms. b. control the growth of monopoly and enhance competition. c. deal with the threat of competitive practices to public interests. d. create an environment in which the government will distrust firms. e. create an environment in which firms will distrust the government.
Which of the following is a difference between a consumption expenditure and an investment expenditure?
a. A consumption expenditure has a short-run motive, while an investment expenditure has a long-run motive. b. A consumption expenditure is confined to a small amount of money, while an investment expenditure requires large sums of money. c. An individual that spends his or her money for investment purposes cannot spend for consumption purposes. d. An individual that spends his or her money for consumption purposes cannot spend for investment purposes.
Assume the development of a new technology that allows widgets to be produced for less. Also, assume that widgets are a key input in the production of whatchamacallits. As a result of this new technology, what would an economist expect to happen in the market for whatchamacallits?
a. the demand curve will shift to the left b. the supply curve will shift to the left c. the demand curve will shift to the right d. the supply curve will shift to the right e. none of the above