What do economies of scale, the ownership of essential raw materials, and patents have in common?
A. They are all barriers to entry.
B. They all help explain why the long-run average cost curve is U-shaped.
C. They all help explain why a monopolist's demand and marginal revenue curves coincide.
D. They must all be present before price discrimination can be practiced.
Answer: A
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Which of the following is NOT a potential impact of a rent ceiling set below the equilibrium rent?
A) a surplus B) an increase in search C) a deadweight loss D) None of the above because they are all impacts of a rent ceiling set below the equilibrium rent.
When inflation falls, people
a. make less frequent trips to the bank and firms make less frequent price changes. b. make less frequent trips to the bank while firms make more frequent price changes. c. make more frequent trips to the bank while firms make less frequent price changes. d. make more frequent trips to the bank and firms make more frequent price changes.
A strategy that identifies the causal effects of a policy or factor by looking at two samples that lie on either side of a threshold or cutoff is called intention to treat.
Answer the following statement true (T) or false (F)
When fiscal policy makers wish to reduce aggregate demand, they could enact:
A. contractionary monetary policy. B. expansionary monetary policy. C. contractionary fiscal policy. D. expansionary fiscal policy.