A natural monopoly occurs when
A) one firm owns all the vital resources needed to produce a particular good.
B) economies of scale allow one firm to supply the entire market at the lowest possible cost.
C) a few firms collude to act as a single firm.
D) one firm captures all the consumer surplus.
B
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My brother decides to leave his empty soda can on someone's lawn. This is an example of a
A) public good. B) positive externality. C) neutral externality. D) negative externality.
Which of the following factors did not contribute to the federal budget surpluses in the 1990s?
a. Higher taxes on the rich b. More federal government spending discipline c. Market globalization d. Slower consumer spending e. Rising business optimism based on technological innovation
The difference between M1 and M2 is given by which of the following?
a. M1 includes currency, coins, gold and silver, whereas M2 does not contain gold and silver. b. M1 is made up of currency, traveler's checks, and money in checkable accounts, whereas M2 contains M1 plus savings deposits and time deposits. c. M1 is limited to currency, whereas M2 contains M1 plus traveler's checks and money in checkable accounts. d. M1 includes currency and traveler's checks, whereas M2 contains M1 plus money in checking accounts.
A scatter diagram of the position of the U.S. economy from 1972 through 2007 with the price level on the vertical axis and real GDP on the horizontal axis would show a movement generally toward the
a. northwest. b. northeast. c. southwest. d. southeast.