1) Investing in R&D is more likely to occur in markets where
A. firms have monopoly power protected by regulatory barriers
B. markets are closely competitive markets with close to zero economic profits
C. markets are oligopoly markets with strong collusion agreements
D. markets are monopolistic competitive markets
2) All economies of scale are achieved at the minimum of
A. average total cost
B. total cost
C. average variable cost
D. average fixed cost
3) Inflation is undesirable because it
A. arbitrarily redistributes real income and wealth
B. invariably leads to hyperinflation
C. usually is accompanied by declining real GDP
D. reduces everyone's standard of living in the same proportion
4) An economy's aggregate demand curve shifts leftward or rightward by more than changes in initial spending because of the
A. net export effect
B. wealth effect
C. real-balances effect
D. multiplier effect