If a shoe monopoly experiences an outward shift in its demand curve, the industry demand curve for shoes must have
a. shifted slightly less
b. been flat to begin with
c. shifted slightly more
d. shifted more quickly
e. made the exact same shift
E
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In a monopoly, producers ________ and consumers ________
A) gain; lose B) lose; lose C) lose; gain D) gain; gain E) gain; do not gain or lose
Suppose the index of leading economic indicators begins to decline for several months. Which of the following economic events will likely follow?
a. A recession. b. Severe inflation. c. Greater employment. d. Higher investment.
If the price of marketable permits is kept very high, _____
a. the quantity of pollution in the economy will increase b. a network externality will arise c. firms will adopt more efficient pollution abatement equipment d. environmental groups will start selling additional permits in the market e. firms will have a greater incentive to pollute
The metaphor used to describe the working of the price system to achieve efficiency in a free market is
A. Occam’s razor. B. the prisoner’s dilemma. C. the invisible hand. D. the benefit principle.