When contestable markets exist,
a. it must be an oligopoly
b. the firms set high prices and earn economic profits
c. the threat of new firms entering keeps prices low
d. the government must take steps to regulate the firms
e. laissez-faire can lead to greater market concentration
C
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Someone who is underemployed is someone who:
A. is working part-time, but wants full-time employment. B. is working in a job for which he is overqualified. C. could be contributing more output to society by either working more, or by working using more advanced skills he possesses but doesn't currently use. D. All of these describe someone who is underemployed.
The real wage is equal to the _____
Fill in the blank(s) with the appropriate word(s).
The profit-maximizing price and quantity established by the unregulated monopolist in the above figure are
A. Q1 units of output and a price of P5. B. Q1 units of output and a price of P1. C. Q3 units of output and a price of P3. D. Q4 units of output and a price of P4.
Which of the following would an economist classify as capital?
a. 100 shares of Microsoft stock b. a $50 bill c. a credit card d. a lawyer's personal computer e. a bauxite mine in Jamaica