If the output gap is greater than zero, real GDP is ________ potential GDP, and the economy will ________ to reach full employment
A) greater than; expand
B) greater than; contract
C) less than; expand
D) less than; contract
B
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A market structure in which a small number of firms compete is called
A) perfect competition. B) monopolistic competition. C) oligopoly. D) monopoly.
According to William Shepherd's examination of competitive trends in the U.S. economy, a tight oligopoly
a. is a single firm that controls the entire market and can block entry b. is an industry in which the top four firms supply more than 60 percent of the market, have stable market shares, and cooperate with each other c. is an industry in which the top four firms supply more than 60 percent of the market, have unstable market shares, and do not cooperate with each other d. is an industry in which a single firm has over half the market share and no close rival e. is an industry in which a single firm has over one-third of the entire market, the market share is stable, and the firm cooperates with other firms in the industry
Refer to the graph shown. Areas C and D represent:
A. the loss of surplus by producers resulting from a monopoly. B. consumer surplus redistributed to the monopolist. C. the cost to society of increasing output from Qm to Qc. D. the loss of surplus by consumers resulting from a monopoly.
When the price of baseballs decreases by 15 percent, the quantity demanded increases by 25 percent. Which of the following does this example show?
a. total revenue decrease for an elastic price demand b. total revenue increase for an elastic price demand c. total revenue decrease for an inelastic price demand d. total revenue increase for an inelastic price demand