Which of the following is an example of The Big Squeeze?
A. High profits attract new entrants, which increases supply, and drives down prices.
B. High profits drive out businesses, which increases supply, and drives up prices.
C. High profits drive out businesses, which increases supply, and drives down prices.
D. High profits attract new entrants, which increases supply, and drives up prices.
Answer: A
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For the world, what period of time experienced the fastest growth rate of real GDP per person?
A) between 1000 A.D. and 1500 A.D. B) around 500 B.C. C) after about 1850 A.D. D) around 400 A.D. E) between 1500 A.D. and 1850 A.D.
The cost incurred from the production of an additional unit of a product
A) is called a loss. B) is called opportunity cost. C) must be zero for a firm to be efficient. D) is a marginal cost to the firm.
According to Monetarists, a direct substitution between cash balances and real goods results from a change in
A) investment spending. B) consumption spending. C) government spending. D) the money supply.
An incumbent monopolist producing more output than necessary might be able to keep potential rivals from entering
A) by flooding the market with products below its marginal cost in the short run. B) if learning by doing reduces marginal cost. C) if the long-run marginal cost can be lowered below the potential entrant's short-run marginal cost. D) All of the above.