Along a given demand curve, a decrease in supply will typically
a. decrease price, but the change in quantity could be in either direction
b. increase price and decrease the quantity
c. decrease price but leave quantity unchanged
d. decrease both quantity and price
e. increase both quantity and price
B
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The key characteristic of an oligopolistic market is:
A) production of a homogeneous product. B) mutual interdependence among firms in the market. C) the absence of market power by any one firm. D) ease of entry into, and exit out of, the market.
An exchange rate system under which currencies are allowed to fluctuate with frequent interventions by central banks is called a
A) freely floating system. B) fixed system. C) managed floating system. D) None of the above.
Private disposable income equals GDP ________
A) minus corporate profits and net factor income B) plus transfer payments and net exports C) plus depreciation, transfer payments, and interest payments on government debt D) plus net factor income minus net government income E) none of the above
The theory of monopolistic competition predicts that in long-run equilibrium a monopolistically competitive firm will:
a. produce the output level at which price equals long-run marginal cost. b. operate at minimum long-run average cost. c. overutilize its insufficient capacity. d. produce the output level at which price equals long-run average cost.