Mutual interdependence means that each firm in an oligopolistic industry:

A. considers the reactions of its rivals when it determines its price policy.
B. makes a product identical to those produced by its rivals.
C. faces a perfectly inelastic demand for its product.
D. makes a product similar but not identical to those produced by its rivals.


Answer: A

Economics

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Suppose the population is 300 million people, the labor force is 200 million people, the number of people employed is 185 million, and the working-age population is 170 million people. What is the unemployment rate?

A) 8.8 percent B) 5 percent C) 20 percent D) 7.5 percent E) 92.5 percent

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At any given quantity, the willingness to pay of the marginal buyer is the height of the __________

Fill in the blank(s) with correct word

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If Ricardian equivalence holds, one way to get the expansionary effects of a tax cut to occur is:

A. pair it with increased government spending. B. pair it with reduced government spending. C. to run a campaign inspiring people to buy goods made in the United States. D. None of these will create the expansionary effects of a tax cut.

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Disposable income equals

A) income minus saving. B) income minus both saving and taxes. C) consumption minus taxes. D) the sum of consumption and saving. E) none of the above

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