What are the characteristics of an oligopoly?
An oligopoly arises when a few large firms, relative to the overall market, produce all or most of the output in the industry. There are several basic characteristics of oligopolies:
a . Only a few firms dominate the industry.
b. The product being sold may be homogeneous or differentiated.
c. There may be significant barriers to entry.
d. Decision-making is often mutually interdependent.
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A surplus quantity will occur when
a. quantity demanded is greater than quantity supplied. b. price is above equilibrium. c. demand is elastic. d. price is below equilibrium.
Under laissez-faire, the allocation of resources among different products depends on
A. consumer preferences. B. production costs. C. Both a and b are correct. D. Neither a nor b is correct.
The unemployment rate may underestimate the true extent of unemployment if: a. many part-time employees would like to work full-time, but are unable to get the additional work. b. employees increase the number of hours they work overtime
c. there are a large number of people working in the underground economy. d. any of the above occur.
According to purchasing-power parity which of the following would happen if a country raised its money supply growth rate?
a. its nominal exchange rate would fall b. its real exchange rate would fall c. its real net exports would rise d. All of the above would happen.