A kink in the demand curve facing an oligopolist is caused by:
A. rapidly rising marginal revenues.
B. excessive advertising.
C. the belief that competitors will follow price increases but not match price decreases.
D. the tendency of competitors to follow price reductions but not price increases.
Answer: D
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In a graph, a straight line has a negative slope if the line
A) is vertical. B) is horizontal. C) falls from left to right. D) rises from left to right. E) shows a trend.
Special Drawing Rights (SDRs) are issued to governments by the ________ to settle international debts and have replaced ________ in international transactions
A) Federal Reserve System; gold B) Federal Reserve System; dollars C) International Monetary Fund; gold D) International Monetary Fund; dollars
If the Fed allows the federal funds rate to fall well below the rediscount rate it is likely that the Fed will
A) lower the rediscount rate and increase c, the proportion of demand deposits held as cash. B) raise the rediscount rate. C) increase loans to banks. D) decrease loans to banks.
In a monopolistically competitive industry, firms which enter the market in the long run produce a close substitute and not a standardized product
a. True b. False Indicate whether the statement is true or false