Price fixing tends to fail in an oligopoly because:
A. firms like to have flexibility in setting prices.
B. each firm has an incentive to underprice the other firms.
C. it increases the quantity demanded.
D. consumers don't like fixed prices.
Answer: B
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The agency that restricts insider trading is the
A) Federal Reserve System. B) Securities and Exchange Commission. C) Office of the Comptroller of the Currency. D) Federal Deposit Insurance Corporation.
When there is a high degree of complementarity between two products, then the indifference curves will:
A. be reasonably close to straight lines. B. be perfectly straight lines. C. bend sharply. D. be positively sloped.
Explain how microeconomics is different from macroeconomics.
What will be an ideal response?
Refer to Table 2-11. If the two countries specialize and trade, who should export motorcycles?
A) There is no basis for trade between the two countries. B) Ireland C) Scotland D) They should both be importing motorcycles.