When U.S. Steel, a steel producer, bought control of iron ore companies at the beginning of the 20th century, the company was initiating
A. a vertical merger.
B. an expropriation.
C. a cartel.
D. a horizontal merger.
Answer: A
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Throughout this discussion of taxes, there has been repeated mention of the need for progressivity in the tax system. Why is this an important goal for tax systems in most societies?
What will be an ideal response?
A second-price auction
a. is also called a Vickrey auction b. is conducted by bidders submitting a single sealed bid c. is where the highest bidder wins and pays the amount of the next highest bid d. all of the above
Because monopolists charge a price in excess of marginal cost, it must be the case that monopolists:
A. earn a negative economic profit. B. produce more than the socially optimal level of output. C. earn a positive economic profit. D. produce less than the socially optimal level of output.
The business cycle is the same thing as economic growth.
a. true b. false