Which of the following statements is not correct?
a. The government may use antitrust laws to break up an existing company to improve competition.
b. The government may break up a natural monopoly to lower the price charged to customers.
c. Private ownership is typically preferred to public ownership.
d. Sometimes the best strategy is for the government to do nothing about monopoly inefficiency because the "fix" may be worse than the problem.
b
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Which statement describes the situation when $2.00 = 1 euro?
a. The value of $1 is 2.00 euros.
b. The foreign exchange market is in equilibrium.
c. The quantity of euros supplied exceeds the quantity demanded.
d. The quantity of euros demanded exceeds the quantity supplied.
The price elasticity of demand measures the responsiveness of consumers to changes in the price of a product.
Answer the following statement true (T) or false (F)
If there is a recession in the United Kingdom and a reduction in British imports, and an economic boom in the United States and an increase in U.S. imports, then these events are most likely to cause the British pound to:
A. Appreciate and the U.S. dollar to appreciate B. Depreciate and the U.S. dollar to depreciate C. Appreciate and the U.S. dollar to depreciate D. Depreciate and the U.S. dollar to appreciate
If the quantity demanded of peanut butter falls by 12% when income rises by 10%, then peanut butter is:
A. an inferior good. B. a normal good. C. a necessity D. both an inferior good and a necessity