What will happen to domestic monopolists' prices and outputs when a small country engages in international trade?
a. Prices will rise and outputs will fall.
b. Prices will rise and outputs will rise.
c. Prices will fall and outputs will rise.
d. Prices will fall and outputs will fall
Ans: c. Prices will fall and outputs will rise.
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An economic system is said to be a
a. market economy if there is substantial central planning. b. traditional economy if it relies on extensive market trading. c. market economy if it relies on self-interested behavior and incentives. d. command economy if it relies on long-standing practices.
According to _________, liberal programs survive attempts by conservative administrations to eliminate them because of the "tyranny of the status quo."
a. Arthur Schlesinger, Jr. b. Wagner's Law c. Milton and Rose Friedman d. Robert Higgs
All else being equal, if the price of a product decreases, we would expect
A. quantity supplied to increase. B. demand to increase. C. quantity supplied to decrease. D. supply to decrease.
The oligopolistic industry is not allocatively efficient because
A. the industry produces too little of the good. B. the industry produces at the lowest marginal cost. C. the industry produces at the lowest average total cost. D. the industry produces too much of the good.