Changing the rate at which the central bank makes loans counts as:
A) fiscal policy.
B) monetary policy.
C) neither fiscal nor monetary policy.
D) both fiscal and monetary policy.
Ans: B) monetary policy.
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First movers
A) are usually firms with large market share. B) are the first to bring out a new product. C) usually copy successful products. D) are mainly found in the computer industry. E) have memorable trade names.
The price at which a good or service is traded on international markets is called the ________ price.
A. international B. world C. market D. universal
A goal of market-based reforms of the health care system is to give patients an incentive to pay more attention to the prices of medical services. This would tend to ________ economic efficiency by ________ the costs of medical services
A) increase; increasing B) increase; decreasing C) decrease; increasing D) decrease; decreasing
An oligopoly with a dominant price leader will produce a level of output below that which would prevail under ________ and above that which a ________ would choose in the same industry.
A. cartel; competitive industry B. competition; monopolist C. monopoly; cartel D. monopoly; competitive industry