Oligopoly is a type of industry in which firms are independent.
Answer the following statement true (T) or false (F)
False
Firms in an oligopoly are so large that when one makes a pricing or marketing change, it can affect the profitability of the other firms in the industry. Therefore, firms in an oligopoly are interdependent, not independent.
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According to the Congressional Budget Office, from the 1970s to the 2000s, the natural rate of unemployment in the United States:
A. remained relatively stable. B. increased. C. fell. D. fell to zero, and has since become negative.
Assume that the government increases spending and finances the expenditures by borrowing in the domestic capital markets. If the nation has highly mobile international capital markets and a flexible exchange rate system, what happens to the GDP Price Index and current international transactions in the context of the Three-Sector-Model?
a. The GDP Price Index rises, and current international transactions become more negative (or less positive). b. There is not enough information to determine what happens to these two macroeconomic variables. c. The GDP Price Index rises, and current international transactions become more positive (or less negative). d. The GDP Price Index and current international transactions remain the same. e. The GDP Price Index falls, and current international transactions become more negative (or less positive).
Give a few examples of incentive compensation.
What will be an ideal response?
The private ownership of property resources and use of prices to direct and coordinate economic activity is characteristic of:
a. Socialism b. A command system c. Communism d. A market system