Which of the following is TRUE of an oligopoly?
A. They do not react to actions of their competitors.
B. Each firm produces a small portion of the total output.
C. They engage in nonprice competition.
D. Firms do not care what their competitors do.
Answer: C
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The labor market is composed of
a. a relatively homogeneous supply of labor and downward-sloping demand curve. b. a vertical supply curve for labor and relatively elastic market demand. c. many submarkets for labor of different types. d. more teenagers than any other age group of labor.
A utilitarian government will pursue policies that redistribute income from the rich to the poor. One problem with these policies is that
a. everyone has less incentive to work hard. b. the rich will work harder while the poor will not. c. the poor will work harder while the rich will not. d. everyone in the middle class ends up worse off.
During times of high unemployment, colleges often observe an increase in enrollment even if tuition remains unchanged. Why?
A. Students go to college even when the net benefit is negative. B. The opportunity cost of attending college is higher when unemployment is high. C. The benefit of attending college is lower because college graduates are less likely to find jobs. D. The opportunity cost of attending college is lower when unemployment is high.
Quotas are a much greater threat to competition than are tariffs because quotas preclude additional imports at any price.
Answer the following statement true (T) or false (F)