There exist only two causes of monopoly: barriers to entry and government restrictions.
Answer the following statement true (T) or false (F)
False
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Refer to the above figure. Suppose the economy had been at point A and now is at B. What could have caused the movement to B?
A) Unusually good weather causes the wheat crop to be larger than normal. B) Both the labor force and the population increased. C) Winter storms cause factories in the north to be shut down for several weeks. D) Government spending increased causing aggregate demand to increase.
The concept of "opportunity cost" helps us explain the choices of
A) consumers only. B) producers only. C) greedy people only. D) politicians only. E) any individual.
The relationship between the unemployment rate and the natural unemployment rate is that the unemployment rate
A) fluctuates about the natural rate. B) equals the natural rate. C) is always below the natural rate. D) is always above the natural rate.
In the short run, a price increase in the goods and services market measured by the CPI will: a. increase the purchasing power of money
b. improve producer profits and, thereby, induce suppliers to expand output. c. increase resource prices, lower profits, and lead to a decline in output. d. reduce the natural rate of unemployment.