A market is contestable if
A. the number of firms is larger than oligopoly.
B. firms spend a lot on advertising.
C. there is free entry and exit.
D. firms have kinked demand curves.
Answer: C
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All else equal, when oil prices decrease, people are ________ to look for oil substitutes. This will ________ the number of years it will take to deplete the stock of oil
A) discouraged; increase B) discouraged; decrease C) encouraged; increase D) encouraged; decrease
The long-run aggregate supply curve shifts to the right when there is
A) an increase in the total amount of capital in the economy. B) an increase in the available technology. C) a decrease in the natural rate of unemployment. D) A and B. E) A, B, and C.
Where do the FDIC's funds come from?
A) Congress appropriates money for the FDIC, just as it does for other federal agencies. B) The FDIC earns income through the insurance premiums paid by insured banks and from investment earnings. C) The FDIC sells bonds in the financial markets. D) The FDIC relies on voluntary contributions from the banking community.
Refer to the above figure. Medicare subsidies have increased the price of medical services to Ps. The quantity demanded of medical services is
A) QM. B) Q0. C) Qd. D) undetermined without more information.