When Economists Make

question 37

Multiple Choice

When economists make

• A)positive statements,they are speaking not as policy advisers but as scientists.
• B)positive statements,they are speaking not as scientists but as forecasters.
• C)normative statements,they are speaking not as policy advisers but as scientists.
• D)normative statements,they are speaking not as policy advisers but as model-builders.

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Definitions:

Unregulated Monopoly

A market condition where a single company or entity exclusively controls a particular industry or service without any governmental restrictions or oversight.

Pure Competition

A market structure characterized by a large number of small firms producing an identical product in an industry (market area) that permits complete freedom of entry and exit. Also called price-taker markets.

Efficient Allocation

The process of distributing resources in a way that maximizes the net benefit received from their use.

Monopoly Power

The ability of a company or group to control the market for its product or service, thus limiting competition.