For a monopolist, ______.
a. its demand curve is downward sloping
b. its marginal revenue is less than price
c. existing economic profits can be sustained over time
d. all of these
Ans: d. all of these
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If the number of people unemployed is 100, the number of people employed is 1000, and the working-age population is 1400, then the labor force participation rate is
A) 78.6 percent. B) 71.4 percent. C) 64.3 percent. D) 66.6 percent.
The mismanagement of financial liberalization in emerging market countries can be understood as a severe
A) principal/agent problem. B) asymmetric information problem. C) lemons problem. D) free-rider problem.
The main problem with using the infant industries argument to justify protecting an industry from foreign competition is that
a. all industries will claim that they are infant industries in order to gain protection. b. the protected industry will become too efficient and drive out foreign competition. c. once in place, it is difficult to remove protection even as the industry matures. d. it causes the goods that are produced in the protected industry to have lower prices.
Refer to Scenario 7.3 below to answer the question(s) that follow. SCENARIO 7.3: Upon graduating with an accounting degree, you open your own accounting firm of which you are the sole employee. To start the firm you passed on a job offer with a large accounting firm that offered you a salary of $60,000 annually. Last year you earned a total revenue of $100,000. Rent and supplies last year were $50,000. Refer to Scenario 7.3. Your annual economic costs are
A. $0. B. $50,000. C. $60,000. D. $110,000.