If a firm perceived that the other firm in an implicit pricing agreement dropped its price in response to a change in market conditions, then its most likely response would be to:
A. match the other firm's price.
B. engage in a price war.
C. raise price to punish the other firm.
D. keep its price the same.
Answer: A
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A country exports a good if
A) it has a high opportunity cost of production. B) the world price of the good is above the country's no-trade equilibrium price. C) the quantity demanded of the good in the country is greater than the quantity supplied at the world price. D) it cannot import the good. E) the world price of the good is below the country's no-trade equilibrium price.
The majority of people living in colonial America in 1790 were of African origins
Indicate whether the statement is true or false
Which of the following statements about public education is TRUE?
A) Over the last 40 years, there has been an increase in spending for public education, while there has not been a significant increase in performance. B) Over the last 40 years, there has been a decrease in public spending for public education, while there has not been a significant increase in performance. C) Most of the increases in public spending on public education have gone into programs that have increased student learning. D) Over the last 40 years there has been no decline in any of the measures of student performance in public education.
Central planning is a key characteristic of which economic system?
A) free market B) price system C) command and control D) mixed economic system