The meaning of interdependence in a monopolistically competitive market is
A) that it is difficult for firms to get together to collude.
B) that products produced by firms will be good substitutes.
C) that firms will not take into account the reaction of rival firms.
D) that price rigging commonly occurs.
Answer: C
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Limiting protectionism means
A) reducing political dishonesty. B) reducing consumer fraud. C) reducing trade barriers. D) reducing corruption.
Under a system of private property, could a 60-year-old owner of a tree farm benefit by planting and caring for
a. No, the farmer will be dead before the crop will be ready for harvest. b. No, the value of the farmer's land will decline since he is taking it out of production for the next 50 years. c. Yes, the farmer will benefit because this action will increase the value of the land if and when the farmer decides to sell. d. Yes, but only if the project is subsidized by the government or private conservation groups.
Because resources are scarce relative to wants, the study of economics concerns
A) how money is important to people. B) how individuals, businesses, and governments make choices. C) how money is used to buy what people want. D) None of the above are correct.
According to the law of demand, the higher the price, the lower the quantity demanded. But, five years ago the Dropouts used to sell only 50 tickets for their shows at $5 each. Today they sell 5000 tickets at $20 each
Does the change described above contradict the law of demand? A) Yes, because the price has fallen and the quantity demanded has fallen. B) Yes, because the price has risen and the quantity demanded has risen. C) No, because the supply has risen. D) No, because other things weren't constant.