The Sweezy model of oligopoly reveals that:
A. perfectly competitive prices can arise in markets with only a few firms.
B. capacity constraints are not important in determining market performance.
C. changes in marginal cost may not affect prices.
D. All of the statements associated with this question are correct.
Answer: C
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Whether a tax is levied on sellers or buyers, buyers and sellers usually share the burden of taxes
a. True b. False Indicate whether the statement is true or false
The amount of consumption in an economy depends:
a. Inversely on the level of saving b. Directly on the level of disposable income c. Inversely on the level of disposable income d. Directly on the rate of interest
How is the public debt calculated?
A. By subtracting consumption and investment from government spending each year and then cumulating the annual totals over the years of the nation B. By adding up consumption, investment, government purchases, and net exports and then cumulating the annual totals over the years of the nation C. By computing the difference between annual government tax revenues and annual government spending and cumulating the differences over the years of the nation D. By subtracting current government spending from current government tax revenues
In order to prove that Dr. Pepper and 7-Up are substitutes, the FTC should test the __________ and get a __________
a. price elasticity of demand; number less than 1 b. income elasticity; positive number c. price elasticity; negative number d. price elasticity of demand; number greater than 1 e. cross elasticity; positive number