Which of the following describes an oligopoly?
(A) Eight to ten firms producing 90 percent of the output.
(B) Four firms producing 70 to 80 percent of the output.
(C) One firm producing 95 percent of the output.
(D) Eight to ten firms producing 60 to 70 percent of the output.
Ans: (B) Four firms producing 70 to 80 percent of the output.
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At a trough in the business cycle, the macroeconomic equilibrium is ________ the level of potential real GDP
A) equal to B) rising above C) greater than D) less than E) None of the above answers is always correct because the relationship depends on whether the previous phase of the business cycle had been a recession or an expansion. The table gives the aggregate demand and aggregate supply schedules for a nation.
Professional organizations and producer groups have an incentive to
a. restrict advertising in order to enhance competition on the basis of price. b. restrict advertising in order to reduce competition on the basis of price. c. encourage advertising in order to reduce competition on the basis of price. d. encourage advertising in order to enhance competition on the basis of price.
Briefly explain the four rationales for efficiency wages
Keynes believed that:
A. market forces pushing the economy to potential income were weak. B. the government could not aid market forces to push the economy to its potential income. C. market forces pushing the economy to potential income were strong. D. market forces pushing the economy into cumulative spirals were weak.