An efficient market is a market
A. in which there are no opportunity costs.
B. that deals in unlimited resources.
C. in which profit opportunities are eliminated almost instantaneously.
D. in which long-term profits are guaranteed.
Answer: C
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If an industry is monopolized by one firm, the four-firm concentration ratio equals
A) 1 percent. B) 25 percent. C) 40 percent. D) 100 percent.
The excess supply created when governments impose a price floor is:
a. shrinking as the floor rises. b. the difference between the old quantity supplied and new quantity demanded. c. the difference between the new quantity supplied and the old quantity demanded. d. the difference between the new quantity supplied and the new quantity demanded. e. actually efficient because prices are higher for suppliers.
An example of a natural resource is:
A. Michael Jordan's athletic ability. B. Farmer Joe's farm fields. C. Bill Gates' revolutionary iPod. D. All of these are examples of natural resources.
An economist might say that people choose not to get a college degree because they may have to borrow money to go to college, and the interest they have to pay on that loan in the future will affect their decisions today. This is an example of which kind of statement?
a. positive statement b. normative statement c. trade-off statement d. allocative statement