An oligopoly firm is similar to a monopolistically competitive firm in that
A) both operate in a market in which there are significant entry barriers.
B) both firms face the prisoner's dilemma.
C) both firms have market power.
D) both firms are in industries characterized by interdependence of firms.
C
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The relationship in the above figure indicates that
A) a decrease in the interest rate leads to a decrease in household income. B) a decrease in household consumption leads to a decrease in interest rates. C) a decrease in household income will lead household consumption to increase. D) none of the above.
Which of the following statements is NOT true about exchanges in the market system?
A) In voluntary exchange both parties are better off because of the exchange. B) Exchanges occur only in situations of barter where the market price is irrelevant. C) Prices indicate what is relatively abundant and what is relatively scarce. D) Transaction costs in exchanges include the cost of enforcing a contract as well as the costs of information.
State-chartered banks that are members of the _____________ System are examined by the Federal Reserve.
Fill in the blank(s) with the appropriate word(s).
Exhibit 12-8 Negative income tax for a family
Under the negative income tax shown in Exhibit 12-8, what cash payment would a family with no earned income receive from the government?
A. $0. B. $10,000. C. $15,000. D. $30,000.