In an oligopoly market, firms do not produce identical product
a. True
b. False
Indicate whether the statement is true or false
False
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The period for which the Consumer Price Index is defined to equal 100 is called the
A) base period. B) starting point. C) beginning period. D) zero period. E) reference base period.
When the average total cost curves for firms are unaffected by the entry of other firms,
a. it is an increasing-cost industry b. it is a decreasing-cost industry c. the market's equilibrium price will eventually be restored after the market demand increases d. firms will charge a higher price when demand rises e. the long-run supply curve is positively sloped
Suppose the goal of a union is to maximize the total income of all workers it represents. In this case it will probably aim for a wage at which the elasticity of demand for workers is
a. 0. b. infinite. c. 1. d. ranging from 2 to 5.
Your roommate is having trouble grasping how monetary policy works. Which of the following explanations could you use to correctly describe the mechanism by which the Fed can affect the economy through monetary policy? Increasing the money supply
A) lowers the interest rate, and firms increase investment spending. B) causes people to spend more because they know prices will rise in the future. C) raises the interest rate and consumers decrease spending on durable goods. D) lowers the interest rate, raises the value of the dollar, lowers the prices of exports, and raises net exports.