A form of implicit collusion where one firm in an oligopoly announces a price change which is matched by other firms in the same industry is
A) "tit-for-tat" pricing. B) "follow the leader" pricing.
C) retaliation pricing. D) price leadership.
D
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Which of the following describes the Giffen good case? When the price of the good
A) rises, the income effect is opposite to and greater than the substitution effect, and consumption falls. B) falls, the income effect is in the same direction as the substitution effect, and consumption rises. C) falls, the income effect is in the opposite direction to the substitution effect, and consumption falls. D) falls, the income effect is in opposite direction to the substitution effect and consumption rises. E) Both A and D are correct.
Which of these is most likely to shift the long-run aggregate supply curve to the left?
What will be an ideal response?
A country is likely to be better off in the long run if it pursues self-sufficiency
Indicate whether the statement is true or false
Which of the following is an example of an efficiency-equity trade-off faced by economic agents?
A) According to an article by in the American Journal of Public Health by Edward Kaplan and Michael Merson of Yale University School of Medicine, the federal government's current method of allocating HIV-prevention resources is not cost-effective. Instead of allocating resources to states in proportion to reported AIDS cases, resources should flow first to those activities that prevent more infections per dollar and then to less and less effective combinations of programs and populations until funds are exhausted, even if it means that some populations would be left without any prevention services. B) Concerned about the falling birth rate, the French government has pledged more money for families with three children, in an effort to encourage working women to have more babies. C) Some U.S. colleges are actively recruiting foreign students for their technology-based programs. D) All New York City art museums are considering adopting a free-admission policy for local residents one weekend per month.