If an oligopolist is faced with a marginal revenue curve that has a gap in it, we may assume that:
A. it is colluding with its rivals to maximize joint profits.
B. its demand curve is kinked.
C. it is selling a standardized product.
D. it is selling a differentiated product.
Answer: B
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When the Fed lowers the federal funds rate, which of the following economic variables responds most slowly?
A) other short-term interest rates B) the inflation rate C) consumption expenditure D) the long-term real interest rate E) the supply of loanable funds
Discrimination based upon the quantity consumed is referred to as ________ price discrimination
A) first-degree B) second-degree C) third-degree D) group
Which of these is most likely to shift the long-run aggregate supply curve to the left?
a. An increase in the average workweek b. An improvement in technology c. A civil war d. A decrease in aggregate demand e. A decline in global oil prices
How much is induced consumption?
C = $7 trillion Disposable income = $10 trillion Autonomous consumption = $3.5 trillion?