The government is likely to block a merger if:
A. the firms remaining would all earn economic profit.
B. it can be established that the merger would substantially reduce competition.
C. the firms remaining would be able to charge a price above marginal cost.
D. the firms that are merging are producing different products.
Answer: B
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According to the law of demand, if other relevant factors remain unchanged, then a rise in the price of a commodity will cause
a. a reduction in the equilibrium quantity. b. excess supply. c. suppliers to reduce their production in reaction to the lower demand. d. a fall in the quantity demanded.
Suppose that your public library charges a fixed monthly membership fee of $12. Members are allowed to check out as many books as they want under this plan. The average member checks out 4 books per month
Suppose that your public library changes its policy. Now each book costs $3 to check out but there is no longer a monthly membership fee. What effect do you think the new policy will have on the total number of books checked out from your library each month? The new policy is likely to ______the number of books checked out because ________. A) leave unchanged; members have already shown that they are willing to pay $12 to check out 4 books per month B) leave unchanged; the average cost of the library service is the same under both plans C) reduce; the marginal benefit of checking out books is now lower under the new policy D) reduce; the marginal cost of checking out books is now higher under the new policy E) increase; the average benefit of checking out more than 4 books is now higher under the new policy
Trade deflection is an act that
A) decreases the amount of international trade in the world. B) increases the amount of international trade in the world. C) has no impact on the amount of international trade in the world. D) is illegal among all countries in the world.
The natural rate of unemployment
a. arises from a single problem that has a single solution. b. is easy for policymakers to reduce. c. Both a and b are correct. d. None of the above is correct.