Which consequence is least likely to follow from an increase in the price of gasoline?
A) Decreased demand for automobile tires
B) Decreased demand for gasoline
C) Increased demand for airline tickets
D) Increased demand for fuel-efficient cars
E) Increased demand for public transportation
B
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The decline of output of other domestic auto producers besides Ford, General Motors and Chrysler occurred in the presence, even before 1970, of rising sales of imported cars in the U.S. market
Indicate whether the statement is true or false
If oligopolists start cutting prices to capture a larger market share, the result will be
A. Lower prices, increased output, and smaller profits. B. Lower prices, increased output, and larger profits. C. Lower prices, decreased output, and larger profits. D. Higher prices, increased output, and larger profits.
When a local casino spends millions in TV ads convincing town residents to reject another casino's bid to operate in the area, the casino is:
A. rent seeking. B. seeking rent controls. C. acting fraudulently. D. allocating resources efficiently.
The interest rate decisions made by the Federal Open Market Committee:
A. can be overridden by the U.S. Senate by a two-thirds majority. B. can be overridden by the President. C. cannot be overridden by anyone outside of the Federal Reserve. D. can be overridden by the Secretary of the Treasury.