If Your Farm Had the Only Known Source of a Rare

question 185

Multiple Choice

If your farm had the only known source of a rare cocoa bean needed to make chocolate-covered peanuts,your monopoly would result from:

• A)control of a scarce resource or input.
• B)technological superiority.
• C)increasing returns to scale.
• D)government-set barriers.

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Definitions:

Purchasing Power Parity

Purchasing power parity (PPP) is an economic theory that compares different countries' currencies through a "basket of goods" approach, suggesting that exchange rates should adjust so that identical goods cost the same in different countries.

Interest Rate Parity

A theory which suggests that the difference in interest rates between two countries is equal to the expected change in exchange rates between their currencies.

Approximation Formula

A mathematical equation or expression used to estimate a value or to simplify calculations.