Monopolies are inefficient because they (i) eliminate barriers to entry. (ii) price their product at a level where marginal revenue exceeds marginal cost. (iii) restrict output below the socially efficient level of production
a. (i) and (ii) only
b. (ii) and (iii) only
c. (iii) only
d. (i), (ii), and (iii)
c
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Intra-industry trade is most common in the trade patterns of
A) the industrial countries of Western Europe. B) the developing countries of Asia and Africa. C) raw material producers. D) China with the rest of the world. E) labor-intensive products.
The basic nature of the real property tenure that was transferred here from England included all of the following characteristics of ownership except
(a) Ownership by purchase was perpetual as long as taxes due were met. (b) Land could descend to heirs either by will or inheritance. (c) Ownership included surface resources but not subsurface resources or mineral rights, like iron ore, whose ownership was retained by the state. (d) The right to exploit owned resources (right of waste) was complete.
The pollution emitted by a factory is an example of_____
a. an externality b. the free-rider problem c. asymmetric information d. the common-pool problem
Countries that have adopted liberal reforms and substantially increased their economic freedom rating in recent years
a. experienced falling income levels per capita during 1995-2009. b. grew slowly during 1995-2009. c. achieved impressive growth rates of real GDP per person during 1995-2009. d. have grown less rapidly than high income industrial economies.