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1. Entrepreneurship is a A. Distruptive B. Stabalizing force in an economy.
2. True or False: Economic models cannot fully capture the dynamic process of competition, in particular, the discovery of new products and methods.
3. True or False: Our standard of living would be higher if the government always bailed out troubled businesses.
4. True or False: If a firm is operating in a contestable market, it should operate at the efficient production level and earn a positive profit.
5. The contestable market model has important policy implications. If there is concern that a market is not sufficiently competitive, what can policymakers do to increase competition in a given industry? Check all that apply.
- Increase entry barriers
- Decrease entry barriers
- Decrease regulations
Which of the following statements are true? To curb inflation and reduce the money supply the Federal Reserve can: I. Increase the discount rate II. Increase the required reserve ratio III. Decrease the discount rate IV. buy securities in the open ma..
A business is generating $1000 a month for the next 5 years at a nominal interest rate of 12% compounded monthly. How much cash should one pay for it?
Going to medical school and specializing in a surgical residency is extremely profitable, and the best evidence to support that is the high annual incomes earned by surgeons.
q1. if michael has 48 to spend on cola and pretzels what combination should he purchase in order to maximize his
Explain how the market will respond to the new product. If demand is high, then it's worthwhile to make the extra investment for special facilities also equipment needed to produce the component internally.
What is the necessary requirement to turn a business idea into a business? If you don't have customers willing to buy your new product or service at a price that gives you a profit, do you really have a business?
A long the long-run supply curve of an increasing-cost industry that is characterized by perfect competition, all of the following can vary except. For the case of an increasing-cost industry, supply is
The reservation wage for a worker will be higher when:
The government finances deficits by borrowing. By reducing the pool of saving, government borrowing can reduce the availability of loanable funds and push interest rates upward--the crowding out effect. Which of the following choices explains how the..
Examine the effects of supply and demand of milk. How do markets operate to bring this product into existence? Think about how these different markets work together to create a new product. How does that relationship affect supply and demand for the ..
q1. illustrate the basis of tension between cooperation and self-interest in a market characterized by oligopoly. use
A patient goes under the knife and will either die right after surgery, survive for 1 year, or survive for 2 more years. Assume that the probability of surviving for a year is 60% and surviving for 2 years in 30%,
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