Why is antitrust legislation necessary?

A. Monopolies tend to misallocate resources.
B. Monopolies will always make a profit in the long run.
C. Monopolies tend to allocate resources in a socially optimal manner.
D. All monopolies are unlawful in the United States.


Answer: A

Economics

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If the government has a budget deficit, crowding out might occur. Crowding out leads to all of the following EXCEPT

A) a higher real interest rate. B) a decreased quantity of investment. C) a smaller capital stock in the future. D) decreased private saving.

Economics

Which of the following is true?

a. The buyer of a firm's stock is purchasing a fractional share in the firm's future net revenues. b. When investors believe that a business decision by the management of a firm will increase the firm's future earnings, the price of the firm's stock will tend to rise. c. Changing stock prices provide the board of directors and managers of a firm with a strong incentive to make good decisions and undertake productive projects. d. All of the above are true.

Economics

The French and Russian revolutions were both fought largely over ______.

a. deciding what to produce b. the distribution of goods c. the use of new production technology d. slow production processes

Economics

Refer to the data. The budget deficit in year 3 is:



Answer the question using the following budget information for a hypothetical economy. Assume that all budget surpluses are used to pay down the public debt.

A.  $175 billion.
B.  $3,050 billion.
C.  $100 billion.
D.  $295 billion.

Economics