Natural monopolies occur when a single or a few firms can take advantage of economies of scale and supply the entire industry output.

Changes in taxes and spending by the executive and legislative branches of a country's government that can be used to either stimulate or restrain the economy are called:

A) monetary policy. B) fiscal policy. C) foreign policy. D) exchange rate policy.

For a renter, the income effect of an increase in apartment rents will

a. have a greater effect than the income effect of an increase in the price of chewing gum b. have no impact on the demand curve for apartments, because everything except price is assumed constant c. have less of an effect than the income effect of an increase in the price of chewing gum d. be almost negligible, because housing is a necessity e. occur only when income increases