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Calculating Saving Rate of a Country using Harrod Domar Equation
Macroeconomics
Microeconomics
Implementation Of Federal Reserve Monetary Policy With Policy Tools
QuestionBesides open market operations, are there other policy tools that Federal Reserve can use to implement monetary policy?SummaryThe question belongs to Economics and it discusses about the various policy tools that Federal Reserve can use to implement monetary policy other than open market ope ... Read More
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Decreasing Cost Industry And Utilities As Natural Monopolies
Question1. Which of the following industries is likely to be a decreasing-cost industry? A) Textiles B) Energy C) Beer &nbs ... Read More
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Difference Between Economic Profit And Accounting Profit And Deriving Short-run Supply Curve For An Industry
Question1. The difference between economic profit and accounting profit is due to the economists' inclusion of opportunity costs of capital.A) TrueB) False2. The short-run supply curve for an industry is derived by adding together the output of every firm in the ... Read More
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Firms Earning Normal Profits In An Industry
Question1. When firms in an industry are earning normal profits:A) they are likely to be investigated for price gouging.B) they are earning zero accounting profits.C) the number of firms in the industry is stable.D) their stocks are not valued by investors.2. Sam, who owns 100 shares of IBM stock, h ... Read More
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Firms Entering Competitive Markets In Short Run And Third Degree Price Discrimination
Question1. In the short run, new firms may enter a competitive market structure.A) TrueB) False2. Which of the following is considered third-degree price discrimination?A) separate prices charged for business passengers and regular travelers on an airplaneB) charging block rates on utilitiesC) charg ... Read More
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New Firms Entering Competitive Market And What Is Not Rent-Seeking Behavior
Question1. Which of the following activities is not rent-seeking behavior?A) lobbying government to protect a monopoly positionB) arguing for free trade among nationsC) extending patentsD) lobbying Congress for tariff protection to reduce foreign competition2. When new firms enter a competitive mark ... Read More
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Exception For Competitive Market Structure And Firm’s Economies Of Scale
Question1. The competitive market structure assumes all of the following except:A) ease of entry and exit.B) identical products.C) a small number of buyers and sellers.D) zero economic profit in the long run.2. When a firm experiences economies of scale:A) its long-run average total costs increase a ... Read More
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Constant Cost Industries Expanding Operations And Price Being Greater Than Average Total Cost
Question1. Constant cost industries can expand operations without experiencing higher or lower prices.A) TrueB) False2. If price is greater than average total cost, the firm:A) is making a normal rate of profit.B) is making an economic profitC) is minimizing losses.D) should increase output. Summar ... Read More
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Price And Average Total Cost Being Equal And Difference Between Competition And Monopolistic Competition
Question1. Price is equal to average total cost if the firm:A. is never in productive equilibrium.B. is earning a normal rate of profit.C. is earning zero profits.D. needs to cut costs in the short run.Use the following dataLabo ... Read More
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Intersection Of Marginal Cost Curve And Average Variable Cost
Question1. Lobbying and the extension of patents are both examples of x-inefficiency.A) TrueB) False2. The marginal cost curve and average variable cost curve intersect where the average variable cost curve is at its minimum point.A) TrueB) False SummaryThese multiple choice questions belong to Eco ... Read More
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Examples Of Common Natural Monopoly
Question1. Natural monopoly is common in which of the following industries?A) public utilitiesB) farming industriesC) automobile industriesD) processed food industries2. Marginal cost is equal to the change in:A) average variable cost divided by the change in total output.B) total fixed cost divided ... Read More
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Characteristics Of Monopoly Market
Question1. Productive efficiency occurs when consumers pay what it costs to produce the last unit.A) TrueB) False2. Which list of characteristics describes a monopoly market?A) many sellers, no close substitutes for the product, significant barriers to entryB) one seller, many substitute products, s ... Read More
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