Conclusions about the misallocation of resources under conditions of monopoly depend, in part, on the crucial assumption that
A) monopolies are interested in economic profits and competitive firms are not.
B) the monopolization of a perfectly competitive industry does not change the cost structure of the industry.
C) the economies of scale exist only in perfectly competitive industries.
D) the marginal cost curve of a monopolist is different from that of a perfectly competitive firm.
B
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In most countries the central bank is
A) totally autonomous from the rest of government. B) semi-independent from the rest of the government. C) a part of the private sector. D) subordinate to the rest of government.
In the Keynesian world a falling real money supply causes GDP to __________ by __________ the real interest rate which causes a(n) __________ in investment
A) increase; increasing; increase B) increase; decreasing; increase C) decrease; increasing; increase D) decrease; increasing; decrease