Question

10.

	monopoly	pure competition
entry	strong barriers to entry	low barriers to entry
producer(s)	single producer	many producers
supply and price	producer determines supply and price	consumer demand determines supply and price
potential for profit	high	low

how does the decision - making process differ between a monopoly and a pure competition market? e.1.4
a. decisions made in a monopoly are made by consumers while the producers make the decisions in pure competition
b. decisions in a monopoly are determined by profit and demand while decisions in pure competition are determined by profit and supply
c. decisions in a monopoly are made by the producer while consumer demand determines decisions in pure competition

1. recently, country x has seen a gradual increase in the unemployment rate, the stock market has declined, and the gross domestic product has shrunk from the last two quarters. e.2.1

based on the information above, what best describes the position of country x in the business cycle?
a. contraction
b. expansion
c. peak

Explanation:

(Question 10):

Step1: Match table to options

From the table: Monopoly has a single producer who sets supply/price; pure competition has supply/price determined by consumer demand.

Step2: Select correct option

Option c aligns with the table's details.

(Question 11):

Step1: Identify economic indicators

Key indicators: rising unemployment, falling stock market, 2 quarters of shrinking GDP.

Step2: Match to business cycle phase

A contraction (recession) is defined by shrinking GDP, rising unemployment, and declining markets, which matches the given data.

Answer:

1. c. Decisions in a monopoly are made by the producer while consumer demand determines decisions in pure competition
2. a. Contraction