If there are two airlines selling service between city A and city B, the best model to analyze this market is
A. perfect competition.
B. monopolistic competition.
C. oligopoly.
D. monopoly.
Answer: D
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The self-correcting property of the economy means that output gaps are eventually eliminated by:
A. increasing or decreasing potential output. B. government policy. C. decreasing inflation only. D. increasing or decreasing inflation.
Suppose that recent studies conclude that high-fiber diets do not reduce the risk of developing colon cancer as was previously thought. The likely result will be that the:
A. price of high-fiber foods will rise. B. quantity demanded of high-fiber foods will fall. C. demand for high-fiber foods will decrease. D. supply of high-fiber foods will increase.
Political instability is an impediment to development mainly because it:
A. undermines both domestic and foreign investment in a developing country. B. creates cultural and social differences among groups in developing countries. C. produces excessive levels of domestic saving. D. redistributes income.
Team production is a production process in which
A) pay is based on group output. B) individuals specialize in mutually supportive tasks. C) competing groups perform identical tasks. D) individuals rotate from one task to another.