Regarding price leadership, which of the following is NOT true?
a. one firm may establish itself as the dominant firm
b. the dominant firm is frequently a larger size or has lower cost structure
c. Price leadership is a model of price-output determination
d. Once established, a barometric price leader will not change
e. price leadership is a pricing strategy followed in many oligopolistic industries
d
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Fiscal policy is defined as
A) the discretionary changing of government expenditures and/or taxes to achieve national economic goals. B) the design of a tax system to transfer income from the rich to the poor. C) the use of the taxing power of the government to redistribute wealth in a socially acceptable manner. D) the use of Congressional power to pursue social and political goals.
Suppose that a worker in Country A can make either 10 iPods or 5 tablets each year. Country A has 100 workers. Suppose a worker in Country B can make either 2 iPods or 10 tablets each year. Country B has 200 workers. Country A would be using resources efficiently if it produced:
A. (500 iPods, 100 tablets). B. (500 iPods, 150 tablets). C. (500 iPods, 200 tablets). D. (500 iPods, 250 tablets).
The proportion of minimum-wage earners who are in families with incomes below the poverty line is
a. less than one-third. b. between one-third and one-half. c. between one-half and two-thirds. d. greater than two-thirds.
Economist Richard Baldwin says the optimism about the Eurozone may be unjustified. His research suggests trade increases in the Eurozone as a result of the currency union:
A) are much larger than previous estimates or forecasts and likely to show future gains. B) are much smaller than previous estimates or forecasts and unlikely to show future gains. C) are less stable and subject to wide variations. D) could be much larger if poor and unstable economies were not in the Eurozone.