Natural monopolies result from ________.
A. control over an essential natural resource
B. pricing strategies
C. patents and copyrights
D. extensive economies of scale in production
Answer: D
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Consider the following:
(i) Define the term diminishing marginal returns to labor. When diminishing marginal returns to labor exist, what can be said about the firm's cost curves? (ii) Define the term decreasing returns to scale. When decreasing returns to scale exist, what can be said about the firm's cost curves?
Price controls
a. are always popular with consumers because they lower prices. b. create shortages. c. increase producer surplus because firms can now sell a greater quantity of a good at a lower price. d. are necessary to preserve equity.
Which of the following statements is true?
A. Expansionary monetary policy tends to lower the exchange rate of an economy. The effects of expansionary fiscal policy are unclear. B. Expansionary fiscal and monetary policy both tend to increase the exchange rate of an economy. C. The effects of both expansionary fiscal and monetary policy on the exchange rate of an economy are unclear. D. Expansionary fiscal policy tends to increase the exchange rate of an economy. The effects of expansionary monetary policy are unclear.
Assume that there was a 5 percent increase in the price of all goods in 2015; if the base year is 2014, then the price index in 2015 will be
A) 95. B) 105. C) 110. D) 1100.