Interdependent decision making on price, quality, or advertising is characteristic of
a. perfect competition
b. monopolies
c. oligopolies
d. monopolistic competition
e. both oligopolies and monopolistic competition
C
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Suppose a monopoly is producing its profit-maximizing output level. Now suppose the government imposes a lump-sum tax on the monopoly, independent of its output
As a result the monopolist will increase the price of its product to cover its higher cost. Indicate whether the statement is true or false
Suppose that the IS curve is stable and money demand is lower than forecasted
If the Fed is targeting the interest rate, it notices the rate is ________ its target, and action to correct this, shifting the LM curve to the ________, causes GDP to ________ natural GDP. A) below, right, fall back toward B) below, right, rise further from C) below, left, return to D) above, left, fall back from E) above, right, rise further from
Which of the following offers the best economic justification for subsidizing vaccinations for infectious disease on the basis of efficiency? a. Vaccinations create a positive externality for society because they reduce the chances the scope of epidemics. b. Vaccinations are a type of pollution that increase the chances and the scope of epidemics
c. A politician offering subsidized vaccinations may be able to get more votes from lower income people and get elected. d. None of the answers above are correct.
At equilibrium, quantity demanded equals quantity supplied
a. True b. False Indicate whether the statement is true or false