Which of the following is NOT a feature of Sweezy oligopoly?
A. Each firm believes that rivals will cut their prices in response to a price reduction, but will not raise their prices in response to a price increase.
B. The firms produce homogeneous products.
C. There are few firms in the market serving many consumers.
D. Barriers to entry exist.
Answer: B
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Recall the Application. Recessions can occur either when there is a(n) ________ in aggregate demand or a(n) ________ in aggregate supply
A) decrease; increase B) increase; increase C) decrease; decrease D) increase; decrease
An insurance agent rents a building and has a three-year lease. An increase in the rent for the building increases the agent's
A) total cost and average variable cost. B) total variable cost and average variable cost. C) total fixed cost and total variable cost. D) total fixed cost and average fixed cost. E) total variable cost and total cost.
The "natural" rate of unemployment is the unemployment rate toward which the economy gravitates in the
a. short run, and the natural rate is the socially optimal rate of unemployment. b. long run, and the natural rate is the socially optimal rate of unemployment. c. short run, and the natural rate is not necessarily the socially optimal rate of unemployment. d. long run, and the natural rate is not necessarily the socially optimal rate of unemployment.
What is the best definition of legal tender?
a. a medium of exchange that has been established through custom or tradition b. a medium of exchange that the government has officially declared to be money c. money that is in the form of metallic coins and printed paper d. money that is backed by the gold standard