Government intervention to reduce the level of pollution is prompted by the existence of
A. An inequitable distribution of income.
B. A monopoly.
C. Negative externalities.
D. Government failure.
Answer: C
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Which of the following statements is true?
A) Monopoly is characterized by no entry barriers. B) Perfect competition is characterized by high entry barriers. C) Firms in a market with entry barriers are likely to have more market power than firms in a market with no entry barriers. D) Firms in a market with no entry barriers are likely to have more market power than firms in a market with entry barriers.
According to the text, grass mowing, T-shirt production, and potato farming are examples of firms
a. that regularly advertise to increase market share b. whose markets are highly seasonal c. with high production differentiation d. with high brand loyalty e. with no barriers to entry
What is the best explanation for the slope of the Keynesian zone of the aggregate supply curve?
A. an increase in aggregate demand causes both real output and the price level to increase. B. an increase in aggregate demand when the economy is operating below potential output causes real output to grow, with little or no effect on the price level. C. an increase in aggregate demand when the economy is operating at potential output causes the price level to rise, with little or no effect on real output.
The normal level of unemployment that persists in an economy in the long run is:
A. also called the equilibrium rate of underemployment. B. zero when the market is equilibrium. C. always achieved in the real world. D. called the natural rate of unemployment.