Economists develop models to
A) capture every detail of the real world.
B) make their arguments more realistic.
C) justify the assumptions they make about people's behavior.
D) help us understand economic phenomena in the real world.
Answer: D
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Assume a firm is a monopoly and enjoys $10,000,000 profits per year. The firm lobbies to have a moratorium passed by Congress on new firms in its market for the next 25 years
If there is no discount rate, how much would any firm(s) arguing against the moratorium be willing to spend to block it? A) something less than $250 million B) $250 million C) $251 million D) $250 billion
As more workers are hired, the marginal physical product of labor eventually declines because
A) less efficient workers are hired as the number of workers increases. B) workers do not work well together when the number of workers increases. C) the amount of capital each worker has to work with declines as the number of workers increases. D) of diseconomies of scale.
Describe the types of entry barriers which can exist and their importance to the study of monopoly
The economic boom between 2002 and 2006 was primarily a result of
a. a reduction in stock prices along with rising oil prices. b. a sharp reduction in the real price of resources and wages. c. an increase in both housing and stock prices. d. an increase in both resource prices and interest rates.