According to "Coke Reignites Price War," price discounting (price wars) can destroy oligopoly profits. When profit destruction occurs,
A. Rival oligopolists seek to end it as quickly as possible.
B. The entire industry will always collapse.
C. Firms are powerless to change prices.
D. Firms will wait for one firm to increase prices.
Answer: A
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Refer to the table above. The capital and financial account balance is
A) $190 billion. B) $200 billion. C) -$190 billion. D) -$200 billion. E) $1,900 billion.
Economists most often disagree over positive rather than normative economic issues
a. True b. False Indicate whether the statement is true or false
In 2009 President Obama and Congress increased government spending. Some economists thought this increase would have little effect on output. Which of the following would make the effect of an increase in government expenditures on aggregate demand smaller?
a. the interest rate falls and aggregate supply is relatively flat b. the interest rate falls and aggregate supply is relatively steep c. the interest rate rises and aggregate supply is relatively flat d. the interest rate rises and aggregate supply is relatively steep
On the Heritage Foundation's scale of "Economic Freedom," which of the following countries is most "Free"?
A. Ireland B. Russia C. North Korea D. Venezuela