If the United States consumption possibilities are greater than its production possibilities, then the United States must have
A. autarky.
B. an open economy.
C. a closed economy.
D. protectionism.
Answer: B
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Refer to the above figure. Which of the following statements is TRUE?
A) Under perfect competition, the efficient price is charged, which is the lowest price possible (P1 ) while under monopoly output is too large (Q4 ) and price is too high (P4 ). B) Under perfect competition price equals marginal cost (P3 ) while under monopoly price (P4 ) is greater than marginal cost (P1 ). C) The rate of output is the same under both monopoly and perfect competition (Q1 ), but price is higher under monopoly (P4 rather than P1 ). D) Price equals marginal cost under both monopoly and perfect competition, but output is too low under monopoly (Q1 instead of Q2 ).
It is possible to completely eliminate scarcity
a. True b. False Indicate whether the statement is true or false
Carson Manufacturing uses sharp but temporary price cuts to discourage new competition in the widget market. Which barrier to entry is used by Carson Manufacturing?
a. Predatory pricing b. Price skimming c. Economies of scale d. Deregulation
The interest rate on loans made by banks in the market in which they lend and borrow reserves from each other for very short periods of time is known as the
a. discount rate b. legal reserve rate c. federal funds rate d. open market rate e. margin rate