Owners of small firms in countries with weak banking systems have to rely on funds from all of the following EXCEPT:
A) their own savings
B) local lenders who charge high interest rates
C) global investors
D) the savings of relatives and friends
C
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Monopolistic competitors advertise because
A) they have downward sloping demand curves. B) the demand curves they face are very elastic. C) they produce goods that can be differentiated from the goods of other firms in the industry. D) they can earn long-run profits if they advertise.
International outsourcing-the shifting of service activities from one country to another-was not an issue when the factor-price equalization theory was developed. Does the existence of outsourcing change the implications of the theory? Justify your answer.
What will be an ideal response?
Capitalist income (corporate profits, interest, and rent) has:
A. declined sharply since 1900 because of the growing strength of labor unions. B. remained approximately constant since 1900. C. increased significantly because of rising rents. D. fallen since 1900 because of the declining importance of corporations.
Figure 8.12 shows a demand and costs of an unregulated monopoly. This firm must:
A. be a natural monopoly. B. have an exclusive government license. C. be a monopoly because it has a patent. D. be operating in a contestable market.