In an economist’s view, a cartel usually offers to society
A. all the cost benefits of large-scale production and none of the allocative inefficiencies of monopoly.
B. all the cost benefits of large-scale production and all of the allocative inefficiencies of monopoly.
C. none of the cost benefits of large-scale production and none of the allocative inefficiencies of monopoly.
D. none of the cost benefits of large-scale production and all of the allocative inefficiencies of monopoly.
Answer: D
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Which of the following statements is true of the long run?
A) Identical firms can enjoy positive economic profits. B) Identical firms face an upward-sloping supply curve. C) Non-identical firms can enjoy positive economic profits. D) Non-identical firms face a horizontal supply curve.
In a market economy, economic activity is guided by
a. the government. b. central planners. c. large businesses. d. prices and self-interest.
What was the GATT, why was it established, and why and with what was it replaced?
What will be an ideal response?
Consider a small open economy with desired national saving of Sd = 20 + 200rw and desired investment of Id = 30 - 200rw.Calculate national saving, investment, and the current account balance in equilibrium when the real world interest rate is(a)rw = 0.025.(b)rw = 0.05.(c)rw = 0.0.(d)Now suppose something causes desired national saving to increase by 10, so that it is now Sd = 30 + 200rw. Repeat parts (a), (b), and (c).(e)Suppose, with desired national saving at its original level of Sd = 20 + 200rw, something causes desired investment to rise by 10, to Id = 40 - 200rw. Repeat parts (a), (b), and (c).
What will be an ideal response?