While there is no specific number of firms that must dominate an industry before it is an oligopoly, the number of sellers characterizes an oligopoly when
A. there are more firms than a monopolistically competitive market.
B. there is a sufficient number of firms to satisfy the market demand.
C. the firms are so large relative to the total market that they can affect the market price.
D. the firms are so small relative to the total market that they cannot affect the market price.
Answer: C
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To achieve long-run equilibrium in an economy with a recessionary gap, without the use of stabilization policy, the inflation rate must:
A. not change. B. increase. C. decrease. D. either increase or decrease depending on the relative shifts of AD and AS.
How has income inequality changed in recent years? What factors account for the changes?
What will be an ideal response?
A person can cause a negative externality by
a. becoming immunized b. talking loudly in a restaurant c. landscaping her lawn d. paying taxes e. attending school
If workers always see inflation coming, and if they demand wage increases in advance so that inflation does not erode real wages, then the economy's aggregate supply curve on the AD-AS diagram will
a. be a vertical line corresponding to potential GDP. b. be a horizontal line corresponding to potential GDP. c. slope downward. d. slope upward.