A form of oligopoly in which a dominant firm sets the price and all smaller firms in the industry follow the dominant firm's pricing policy is called
A. a cartel.
B. the contestable markets model.
C. the price-leadership model.
D. the Cournot model.
Answer: C
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If the Fed decided to target price levels and inflation was lower than its target for a period of time, the Fed would be required to
A) permanently raise inflation above its target to reach and maintain its price level target. B) permanently lower its price level target to align it with the inflation rate. C) temporarily lower its inflation target to match its price level target. D) temporarily raise inflation above its target to reach its price level target.
In general, when a test is less than accurate, our best estimate of a worker's productivity will
A. be his actual test score. B. be the average productivity of the group to which he belongs. C. always lie below his actual test score. D. lie between his actual test score and the average productivity of the group to which he belongs.
The group that benefited the most from international trade has been people who:
A. no one has benefited. B. owners of firms. C. financed international trade. D. managed firms.
Refer to the information provided in Figure 20.2 below to answer the question(s) that follow.
Figure 20.2Refer to Figure 20.2. England has
A. an absolute advantage in producing cars. B. no comparative advantage in producing either cars or trucks. C. a comparative advantage in producing trucks. D. a comparative advantage in producing cars.