A legal monopoly is defined as a market where
A) only one lawyer operates.
B) a legal barrier to entry exists.
C) only one firm could earn a profit.
D) entry and exit are legal.
B
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What does the text suggest might be a possible advantage of being an economically "backward" nation?
A) Illiteracy B) The fact that many women have been systematically denied education, and have therefore learned to become very good homemakers, which is a prerequisite for a stable society C) The nation can adopt the advanced technologies of other nations without having to incur all the costs of research and development. D) If you invert the per capita GDP figures of the so-called "backward" countries, you find they are, in real terms, among the wealthiest nations in the world.
Explain the typical relationship between the interest rates paid on bonds and loans and the riskiness, liquidity, and term to maturity of the bonds and loans
What will be an ideal response?
Suppose the demand for gourmet coffee can be represented by a linear demand curve. At the prevailing market price the income elasticity of demand for gourmet coffee is 2. When income rises the demand curve for gourmet coffee:
A) becomes less elastic at every price. B) becomes less elastic at the price that prevailed before the change in income C) becomes more elastic at every price D) becomes more elastic at the price that prevailed before the change in income
A firm experiences diminishing marginal returns because:
A. all factors of production are variable. B. people "learn by doing." C. all factors of production are fixed. D. at least one factor of production is fixed.