Patents are ________ barriers to entry and public franchises are ________ barriers to entry
A) legal; legal
B) legal; natural
C) natural; legal
D) natural; natural
A
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Which of the following represents key strengths of the market economy as a system of allocation?
a. Goods and services are allocated based on willingness and ability to pay, rather than based on need. b. Producers have strong incentives to innovate because successful innovators are rewarded with higher profit. c. Since price is freely set based on supply and demand, shortages and surpluses are minimized. d. Both b. and c. above are correct.
If all consumers satisfy economists' assumptions regarding utility, then
a. they will each choose a consumption bundle that is inside the budget line b. everyone will choose the same consumption bundle c. everyone will have the same budget line d. all consumers will react in the same way to a price change e. each person will choose a consumption bundle on his or her budget line
Within the framework of the AD-AS model, an increase in savings by households will
a. increase the supply of loanable funds and reduce interest rates. b. be offset by a decrease in savings by businesses. c. cause long-run fluctuations in the rate of consumption. d. result in a decline in aggregate demand, output, and employment.
The purpose of the Corn Laws was to
A. discourage imports and encourage exports, and thus keep the price of food high. B. encourage both exports and imports in order to integrate the British economy with the rest of Europe. C. discourage both imports and exports in order to promote economic self-sufficiency in Britain. D. encourage imports and discourage exports, and thus keep the price of food low.