Which statement about oligopoly is false?
A. Prices in oligopoly are predicted to fluctuate widely and frequently.
B. There is no single predicted pattern of action and reaction for oligopolists because one firm's behavior is a function of what its rivals do.
C. Oligopolistic firms recognize their interdependence.
D. A few firms play an important role in the sale of an identical or differentiated product.
Answer: A
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Contrary to what believers in the Phillips curve would say, U.S. economic data from 1955 to 2000 show evidence of:
a. a positive relationship between the unemployment rate and inflation. b. no short-run relationship between the unemployment rate and inflation. c. increases in both unemployment and inflation rates. d. a constant rate of inflation, with changing rates of unemployment. e. a constant rate of unemployment, with changing rates of inflation.
A more elastic demand for a good would generally result from
a. an increase in the supply of that good b. an increase in the number of substitutes for that good c. a decrease in the number of substitutes for that good d. smaller consumer incomes e. a reduction in the number of consumers
Which of the following is an approach used by economists to calculate the value of a human life?
a. comparing the salaries of people who live in cities with more traffic lights to those who live in cities with fewer traffic lights b. comparing the wages of more risky occupations to less risky occupations c. comparing the costs of vehicles with safety features such as side-impact airbags to those without such safety features d. All of the above are correct.
The summer in Miami turned out to be warmer than usual, causing people to drink more colas. This can be represented by:
a. a rightward movement of the demand curve for colas. b. a leftward movement of the demand curve for colas. c. an upward movement along the demand curve for colas. d. a downward movement along the demand curve for colas.