In a natural monopoly situation
A. there is no need for government regulation.
B. producers try to differentiate their product with advertising.
C. there are large economies of scale relative to demand.
D. the firm has an upward sloping average cost curve.
Answer: C
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A. ended with the passage of the Freedom to Farm Act of 1996. B. began with the Grain Planting Act of 1914. C. remains the core of U.S. farm policy. D. was restored in full and expanded by the Food, Conservation, and Energy Act of 2008
A. ended 60 years of U.S. price supports for American grain crops. B. restored the U.S. price support system (for currently grown crops) that was ended in the Freedom to Farm Act of 1996. C. ended the "freedom to plant" approach of the Freedom to Farm Act of 1996 and restored acreage allotments. D. maintained the "freedom to plant" and "direct-payment" features of the Freedom to Farm Act of 1996, and also provides countercyclical payments and marketing loans to assist farmers.
Which of the following is an example of an investment, as described in Chapter 12 of your textbook?
A) The government builds a dam to have a source of hydroelectric power. B) A student attends college. C) A firm builds a new plant. D) all of the above
Which of the following does NOT describe a function of money?
A) unit of account B) barter C) medium of exchange D) store of value
If domestic savings was 2 billion last year and domestic investment was -12 billion, then the current account balance is
A) 10 billion. B) -10 billion. C) 14 billion. D) -24 billion.