Which of the Following Is Not a Form of Crowding

question 114

Multiple Choice

Which of the following is not a form of crowding out?

• A)lower household spending due to higher interest rates
• B)lower business spending due to higher interest rates
• C)lower net exports due to higher interest rates
• D)lower private spending due to higher taxes
• E)none of the above; they all represent crowding out

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Definitions:

Natural Monopolies

A type of monopoly that occurs when a single firm can supply a good or service to an entire market at a lower cost than two or more firms.

Patents

Legal rights granted to inventors or assignees for a certain period of time, allowing them to exclude others from making, using, or selling an invention.

Perfectly Competitive Firms

Businesses operating in a market where no single buyer or seller has the power to influence prices, and products are homogeneous, resulting in many sellers and buyers.

Industry Output

Industry Output is the total product or service produced within an industry, which is a key indicator of economic activity and health.