Why do firms collude to become a cartel? Because it allows them to
a. develop innovations without the threat of competition within the industry
b. compete in order to increase market share
c. act like a monopoly
d. diversify their markets without fear of losing market share
e. increase their own individual concentration ratio
C
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When expectations are rational,
a. a foreseen expansionary policy action does not alter output. b. there cannot be any inflation. c. a foreseen expansionary policy action changes output. d. there is zero unemployment.
In Country X, the government requires employers to collect 9 percent of every employee’s compensation as payroll tax. This is an example of
A. progressive tax. B. regressive tax. C. digressive tax. D. proportional tax.
Dr. X, an assistant professor at a large state university, is trying to decide how to allocate the 50 hours a week she spends working among the various activities expected of an assistant professor. The professor wants to maximize her raise next year and the table shows estimates of how time spent in each activity will contribute to her raise:
Given the above information, how should she allocate her time?
A. 20 hours research, 16 hours teaching, 14 hours service B. 18 hours research, 16 hours teaching, 16 hours service C. 20 hours research, 15 hours teaching, 15 hours service D. 17 hours research, 17 hours teaching, 16 hours service E. none of the above
In the market for yen, an increase in the relative safety of U.S. investments tends to
A. decrease demand. B. increase excess demand. C. increase equilibrium price. D. cause no change in equilibrium price.