One major barrier to entry under pure monopoly arises from ________.
A. the availability of close substitutes for a product.
B. the price taking ability of the monopoly.
C. diseconomies of scale.
D. the cost of the infrastructure needed to produce.
Answer: D
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For which of the following is demand likely to be the most price inelastic?
a. furniture b. automobiles c. hotel rooms d. airline travel e. candy bars
The following table provides nominal exchange rates for the U.S. dollar.CountryForeign currency/dollarDollar/foreign currencyPoland (zloty)4.3670.229South Africa (rand)6.9440.144 Based on these data, the nominal exchange rate equals approximately ________ zloty per South African rand or, equivalently, ________ rand per Polish zloty.
A. 0.021; 47.640 B. 0.629; 1.590 C. 47.640; 0.021 D. 1.590; 0.629
Answer the next question on the basis of the following production possibilities tables for two countries, Latalia and Trombonia.Latalia's Production Possibilities ABCDEPork (tons)43210Beans (tons)05101520Trombonia's Production Possibilities ABCDEPork (tons)86420Beans (tons)06121824Assume that before specialization and trade, Latalia produced combination C and Trombonia produced combination B. If these two nations now specialize completely based on comparative advantage, the total gains from specialization and trade will be
A. 2 tons of pork and 4 tons of beans. B. 4 tons of beans. C. 4 tons of pork. D. 1 ton of pork and 2 tons of beans.
The duration of unemployment tends to
A. increase when business activity decreases. B. increase when the labor force shrinks. C. stay consistently the same over long periods of time. D. increase when employment increases.