What is another named for the production possibilities curve?
a. production possibilities border
b. production possibilities frontier
c. production possibilities wall
d. production possibilities turn
Ans: b. production possibilities frontier
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Which of the following is NOT a reason the Fed alters the rate of growth of the money supply?
A) to influence aggregate demand B) to influence the amount of consumption C) to influence the amount of investment D) to shift the demand for money curve
Assume that the four-firm concentration ratio in an industry is 85 percent. Which of the following statements uses one of the five competitive forces to argue that this industry may be more competitive than its concentration ratio suggests?
A) Even though concentration is high, large firms in the industry may act competitively by spending large sums on advertising. B) The high concentration may be due to patents owned by the largest firms but competition will increase when patent rights expire. C) The threat of entry into this industry can cause firms in the industry to lower their prices and profits in order to deter entry. D) If high concentration is the result of large firms owning much of the available supply of a key input, the industry will become more competitive when new sources of the input are discovered by other firms.
Suppose that the United States decided to subsidize a major competitive effort by the semiconductor industry to bring to market the next generation computer chip. Under the current rules of the WTO and GATT, the U.S. effort is
A) allowed as long as the subsidies are a small percent of the total cost. B) allowed as long as the subsidies do not involve a direct payment to the industry. C) not allowed. D) neither allowed nor disallowed. E) allowed as long as the subsidies do not succeed in creating a new product.
A demand schedule shows
a. the "market potential" for a product. b. how much consumers are willing and able to buy at different prices. c. possible combinations of output under different conditions. d. how much producers would like to sell at different prices. e. All of the above are correct.