The money demand curve will shift down, if
A) the price level decreases.
B) the interest rate decreases.
C) the level of aggregate output increases.
D) the inflation rate increases.
Answer: A) the price level decreases.
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Externalities are unintended costs or benefits that are imposed on unsuspecting people and that result from:
a. poor planning. b. intentional damages. c. excessive costs. d. excessive losses. e. the economic activity of others.
The impact of technological change in the health-care area has been to
A) increase both the quality of health care and the monetary costs of health care. B) increase the monetary costs of health care and decrease the quality of health care. C) decrease the monetary costs of health care while decreasing the quality of health care. D) increase longevity but decrease quality of life.
A fast-food company spends millions of dollars to develop and promote a new hamburger on their menu only to find that consumers won't buy it because they don't like the taste. From an economic perspective, the company should:
A. Keep the hamburger on the menu because they've spent so much money and time developing and promoting the product B. Spend more money to develop a more efficient way to cook the hamburger so it cooks in a shorter time C. Pull the hamburger off the menu and treat the development and promotion expenditures as a sunk cost D. Keep trying to sell the hamburger so that people who developed and promote it have a job with the company
Which of the following is not a barrier to entry in a monopolized market?
a. The government gives a single firm the exclusive right to produce some good. b. The costs of production make a single producer more efficient than a large number of producers. c. A key resource is owned by a single firm. d. A single firm is very large.