For many years the Aluminum Company of America (Alcoa) controlled most of the world's supply of high quality bauxite, the ore needed to produce aluminum. What type of entry barrier was responsible for Alcoa's position in the aluminum industry?
A) ownership of a key input
B) a government-imposed barrier
C) a patent on the manufacture of aluminum
D) economies of scale
Answer: A
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Which of the following statements is true of economic growth?
A) Countries with inclusive institutions are likely to grow faster than countries with extractive institutions. B) In comparison to countries with extractive institutions, economic growth in countries with inclusive institutions is more likely to stagnate in the long run. C) Countries with extractive institutions are likely to grow faster than countries with inclusive institutions. D) Countries with extractive institutions are likely to grow at the same rate as countries with inclusive institution.
An example of a real flow in the circular flow diagram is
A) a household's supply of work effort at its new business. B) Nike's payment of wages to workers in China. C) your county's collection of property taxes. D) the government's payment of wages to a soldier. E) a teacher's salary at the local high school.
Antitrust laws in the United States
A) are an attempt to foster competition. B) are not necessary in the twenty-first century. C) have not been used in the past twenty-five years. D) are the same as the laws in the European Union.
Which of the following statements represents a correct and sequentially accurate economic explanation?
A) If consumption falls, total expenditures on goods and services rises, and the AD curve shifts leftward. B) If investment increases, total expenditures on goods and services falls, and the AD curve shifts leftward. C) If net exports rise, total expenditures on goods and services rises, and the AD curve shifts rightward. D) If consumption falls, total expenditures on goods and services falls, and the AD curve shifts leftward. E) c and d