For a time, either R. J. Reynolds or Phillip Morris raised prices of cigarettes twice a year by about 50 cents per carton. The other firms in the industry raised their prices by the same amount. Economists call this: a price war.
a. predatory pricing
b. a price war.
c. price leadership.
d. producer sovereignty.
c
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Consumers expect that the price of a gallon of gasoline will rise next week. As a result
A) today's supply of gasoline increases. B) today's demand for gasoline increases. C) the price of a gallon of gasoline falls today. D) next week's supply of gasoline decreases.
Refer to Figure 18-2. If the government imposes an excise tax of $1.00 on every unit sold, what is the size of the deadweight loss, if there is any?
A) the area adc if the supply curve is S0 and the area bec if the supply curve is S1. B) the area becf under either supply curve. C) the area afcd if the supply curve is S0 and the area bfce if the supply curve is S1. D) There is no deadweight loss; revenue raised is used to fund government projects.
How many countries have deposit insurance programs?
a. About 50 b. About 70 c. About 100 d. All countries
Treasury securities have ____ risk of default and mortgage-backed securities have ____ risk of default
a. no; no b. no; some c. some; no d. some; some