Suppose the market for bottled water is served by two oligopolists. If they reach an agreement to restrict production and charge a price above marginal cost, then:
A. neither firm will have an incentive to cheat on the agreement since it benefits them both.
B. they will earn a larger profit than a monopolist would have earned.
C. they will charge a higher price than a monopolist would have charged.
D. their agreement is likely to eventually collapse.
Answer: D
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An appreciation of a country's currency
A) decreases the relative price of its exports and lowers the relative price of its imports. B) raises the relative price of its exports and raises the relative price of its imports. C) lowers the relative price of its exports and raises the relative price of its imports. D) raises the relative price of its exports and lowers the relative price of its imports. E) raises the relative price of its exports and does not affect the relative price of its imports.
If the MPC is 0.80, then a change in disposable income of $60 billion will lead to an initial change in consumption of
A. $30 billion. B. $42 billion. C. $48 billion. D. $60 billion. E. $70 billion.
Which of the following is/are example(s) of "mediums of exchange"?
A. money used to buy goods B. goods used to obtain other goods C. pigs used to obtain chickens D. All of these
Which of the following statements about education and the unemployment rate is true?
A. People with more education tend to have higher unemployment rates. B. The unemployment rate tends to be higher for people with less education. C. As the unemployment rate rises, the number of people getting college degrees falls.. D. Unemployment rates are virtually the same for groups with different education levels.