Incumbents are unaffected by fixed costs of entry while potential entrants are affected by them because
A) for potential entrants the cost is avoidable, while for the incumbent, it is not.
B) fixed costs will be greater for the potential entrant than for the incumbent.
C) fixed costs are zero for the incumbent.
D) incumbents will act to prevent entry at all costs.
A
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Political freedom can sometimes moderately reduce economic growth because
A) campaign contributions rob the economy of investment. B) special interest groups may gain at the expense of the overall economy. C) most jobs are in unions that are politically connected. D) none of the above.
The sale of Treasury securities by the Federal Reserve will, in general,
A) decrease the quantity of reserves held by banks. B) not change the money supply. C) not change the quantity of reserves held by banks. D) increase the quantity of reserves held by banks.