Collusion results when a group of firms
i. act separately to limit output, lower prices, and decrease economic profits.
ii. act together to limit output, raise prices, and increase economic profits.
iii. in the United States legally fix prices.
A) i only
B) ii only
C) iii only
D) i and iii
E) ii and iii
B
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The broadest measure to adjust Nominal GDP for price changes is ________.
A. exchange rates B. the Consumer Price Index (CPI) C. the Producer Price Index (PPI) D. the GDP price index
Which of the following statements is true?
A) An increase in the money wage rate shifts the AS curve rightward. B) A fall in the price level shifts the AS curve leftward. C) A decrease in potential GDP decreases aggregate supply and shifts the AS curve leftward. D) An increase in the money wage rate increases potential GDP. E) An increase in potential GDP increases aggregate supply and shifts the AS curve leftward.
Which of the following would be classified as an externality?
a. Smoke from a chimney causes discolored and peeling paint on other houses in the neighborhood. b. Noise from an unmuffled car wakes a sleeping person. c. A neighbor cleans up a yard and repaints a house. d. All of the above are externalities.
Pollution is a negative externality, but it is not appropriate to view the problem of pollution as a common-resource problem
a. True b. False Indicate whether the statement is true or false