Which of the following is important in determining the extent of competition in an industry?
A) the minimum level of short-run average total costs of production
B) the minimum efficient scale of production relative to market demand
C) whether or not the industry product is differentiated or standardized
D) only the level of market demand for the industry's product
Answer: B
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________ are profits that accrue to whomever has the right to import the quota restricted good
A) Quota licenses B) Quota rents C) Quota prices D) None of the above.
____________ occurs when a person is so heavily involved in one domain (work or family) and may not be psychologically or physically available for the other
a. Involvement balance b. Spillover c. Dominance d. Assimilation
Rational expectations economists believe that the potential effects of government policy changes are ______ addressed by households and firms.
a. slowly b. quickly c. unreasonably d. infrequently
Which of the following does not explain why the U.S. economy has been more stable after 1946 than before?
A. A shift from manufacturing to services. B. A large government sector. C. A laissez faire approach. D. Automatic stabilizers.