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
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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
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
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.
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