Pricing and output determination under an oligopoly is more complicated than pricing and output determinations in other industries. The primary reason for the complication is the:
a. fewness of firms.
b. brand loyalty of consumers.
c. powerful effect of advertising.
d. variability of concentration ratios.
e. mutual interdependence of firms.
e
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The Constitution of the United States expressly forbids
A) import tariffs. B) export tariffs. C) import quotas. D) export quotas.
Moral hazard and adverse selection are similar asymmetric information problems but moral hazard involves hidden actions while adverse selection involves hidden characteristics
a. True b. False Indicate whether the statement is true or false
Sophia puts money in the bank and earns a 5 percent nominal interest rate. If the inflation rate is 2 percent, then after one year,
a. Sophia will have 3 percent more money, which will purchase 5 percent more goods. b. Sophia will have 3 percent more money, which will purchase 7 percent more goods. c. Sophia will have 5 percent more money, which will purchase 3 percent more goods. d. Sophia will have 5 percent more money, which will purchase 7 percent more goods.
Unions
a. and firms paying wages above equilibrium to improve worker effort both create frictional unemployment. b. create frictional unemployment, while firms paying wages above equilibrium to improve worker effort create structural unemployment. c. create structural unemployment, while firms paying wages above equilibrium to improve worker effort create frictional unemployment. d. and firms paying wages above equilibrium to improve worker effort both create structural unemployment.