U.S. antitrust laws view monopolies as undesirable because
A) monopolies restrain trade and promote inefficiencies.
B) monopolies create inferior products.
C) monopolies produce only capital goods.
D) monopolies produce only cheap, low quality goods.
Answer: A
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Suppose that along the economy-wide rate-of-return line, the current interest rate of 8 percent causes a planned investment of $300 billion
Should the interest rate fall to 7 percent, the $300 billionth dollar of investment spending now generates a ________ rate of profit, which puts ________ pressure on investment. A) positive, downward B) positive, upward C) negative, downward D) negative, upward
Mixed bundling is
a. Where customers pay for each item separately b. Where customers buy all item in a store at one price c. Where customers have a choice of buying each item separately or all items at one price d. Where customers are charged one fixed fee and a cost per unit for every unit bought
In a perfectly competitive market,
a. each firm faces a perfectly elastic supply curve b. each consumer faces a perfect elastic demand curve c. the market sums up the buying and selling preferences and determines the market price d. the market price is determined by firms and the market quantity is determined by consumers e. price equals marginal cost equals average total cost in the short run
A serious burden of a budget deficit and an increase in the national debt comes on the supply side because large budget deficits
a. discourage consumption and therefore lead to production cutbacks. b. lead to lower interest rates and therefore to excessive optimism by consumers and businesspeople. c. discourage investment and therefore may reduce the growth of the nation's capital stock. d. discourage foreign investment and therefore limit employment opportunities.