The quantity demanded in a market is only large enough for one firm to operate at the minimum of the long-run average cost curve. Which of the following will result in this situation?
a. Natural monopoly
b. Oligopoly
c. Duopoly
d. Cartel
a. Natural monopoly
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Compensating differentials are
A) non-monetary benefits from being employed, such as health-care benefits. B) higher wages that compensate the more experienced workers in a field. C) wages paid to workers where the supply of labor is great relative to demand. D) higher wages that compensate workers for unpleasant aspects of a job.
A world-renowned brain surgeon can type twice as fast as her secretarial assistant. Which of the following statements is true in this situation?
a. The secretary has an absolute advantage in typing. b. The surgeon should do her own typing to save money. c. The surgeon should fire the assistant and work weekends and evenings to stay up on her typing. d. The surgeon should spend her time doing brain surgery and allow her secretary to do the typing because the secretary has a comparative advantage in typing. e. The surgeon should spend her time doing brain surgery and allow her secretary to do the typing because the surgeon has a comparative advantage in typing.
Which of the following is a typical attribute of a socialist country?
A. Taxes are very high, particularly on the wealthy classes. B. Cradle-to-grave security for its citizens. C. A large-scale redistribution of income program from the wealthy and well-to-do to the middle class, working, class and the poor. D. All of the choices are attributes of a socialist country.
Which of the following events will increase short-run aggregate supply?
A) an advance in technology B) an increase in resource prices C) an increase in the natural rate of unemployment D) an increase in foreign income