All of the following are characteristics of an oligopoly EXCEPT
A) diseconomies of scale over all ranges of output.
B) small number of firms.
C) high barriers to entry.
D) interdependence.
Answer: A
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The net-export effect of contractionary monetary policy is a(n)
A) depreciation of the value of the dollar and the increase of U.S. net exports. B) depreciation of the value of the dollar and the decrease of U.S. net exports. C) appreciation of the value of the dollar and the increase of U.S. net exports. D) appreciation of the value of the dollar and the decrease of U.S. net exports.
Which of the following goods is most likely to be associated with monopolistic competition?
a. Gasoline b. Milk c. Cookies d. Wheat
Assume Robbie's Robots operates in a perfectly competitive market producing 3,000 robots per day. At this output level, the selling price is $800 per robot and the marginal cost is $825 per robot. To maximize profits, Robbie's Robots should
A. make no adjustments as they are already maximizing their profits. B. increase their output. C. decrease their output. D. stop producing since it is earning a loss.
When the U.S. minimum wage was first passed in 1938, only 56% of workers were employed in covered firms. The incomplete coverage suggests that
A) the partial equilibrium ignores the movement of workers from uncovered sectors to covered sectors. B) the decrease in employment is higher in general-equilibrium analysis. C) the general-equilibrium analysis predicts the wage in uncovered sectors will fall. D) all the workers will be worse off in both general- and partial-equilibrium analysis.