Price fixing tends to fail in an oligopoly because:
A. firms like to have flexibility in setting prices.
B. each firm has an incentive to underprice the other firms.
C. it increases the quantity demanded.
D. consumers don't like fixed prices.
Answer: B
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The economy pictured in the figure below has a(n) ________ gap with a short-run equilibrium combination of inflation and output indicated by point ________. 
A. recessionary; B B. recessionary; C C. recessionary; A D. expansionary; A
Which of the following industries most closely approximates the oligopoly model?
a. dry cleaning b. fast food c. automobile manufacturing d. agricultural produce
The U.S. dollar: a. is the most ancient form of money
b. is an example of modern money. c. is backed by gold. d. is accepted everywhere around the world.
Illegal immigration positively contributes to the U.S. standard of living by reducing:
A. the fiscal burdens of state and local governments. B. the average wages of domestic-born workers. C. crime rates. D. prices of goods and services produced with illegal immigrant labor.