Monopolies exist for each of the following reasons, EXCEPT:
a. competitors are legally unable to challenge them.
b. they have control over resources with very few good substitutes.
c. it is sometimes inefficient to have competition in certain markets.
d. it increases both producer and consumer surplus.
D
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Your economics professor offers 10 points extra credit if you attend a review session before your next exam. This extra credit is an example of
A) an increase in marginal cost to attend the review session. B) a decrease in marginal benefit to attend the review session. C) a rational choice. D) an incentive to attend the review session. E) None of the above answers is correct.
If the interest rate falls, other things being equal, investment spending will
A) fall. B) rise. C) either rise, fall, or remain unchanged. D) not be affected.
Taxes that governments place on imported goods for reasons such as protecting sensitive industries, influencing humanitarian practices, and protecting against dumping are called ____________.
a. tariffs b. penalties c. restrictions d. limits
The tax burden for a good falls largely on _____
a. the producers who have a perfectly elastic supply of the good b. the consumers who have a less elastic demand for the good c. the consumers who have a perfectly elastic demand for the good d. the producers who have an unit elastic supply of the good