What is the purpose of antitrust legislation?
What will be an ideal response?
Antitrust legislation makes illegal certain economic activities. These activities involve restraining trade and inhibiting free competition among rival firms in the marketplace. The aim is to reduce the economic power of monopolies.
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The long run is a period of time in which
A) all factors of production are variable. B) all factors of production are fixed. C) some but not all factors of production are fixed. D) some but not all factors of production are variable.
Despite specialization and comparative advantage, household production still exists because for some households
a. the opportunity cost of production at home is greater than the cost of purchasing the good in the market b. production at home is less costly than purchasing the good in the market c. the value of home production exceeds the sunk cost of home production d. the value of home production is ignored e. food and clothing expenditures represent a small portion of their total budget
The idea behind comparative advantage reflects the possibility that one party a. may be able to produce something relatively more efficiently than another. b. may be able to produce something at a lower opportunity cost than another. c. may be able to produce something more cheaply than another
d. all of the above
In the long run, if the inflation rate is positive, a currency depreciates to maintain purchasing power parity
a. True b. False