Empirical Estimates Indicate That the Annual Welfare Cost of Monopoly

question 143

Multiple Choice

Empirical estimates indicate that the annual welfare cost of monopoly in the United States

• A)ranges from less than 1 percent to 5 percent of national income
• B)ranges from 10 percent to 20 percent of national income
• C)is approximately 10 percent of national income
• D)is approximately $1 billion
• E)is approximately $1 trillion

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Definitions:

Capacity Utilization Rate

A measure of how well an economy or a firm is using its productive capacity to manufacture goods or services.

Unemployment Rate

A gauge of the share of individuals in the labor pool who are not employed but are actively seeking a job.

Economy Operated

Refers to the manner in which a nation’s economic systems and policies are managed and function to produce goods and services.

Percent Unemployment

The slice of the labor force that remains without work but is actively engaging in job search.