An industry comprised of a small number of firms, each of which considers the potential reactions of its rivals in making price-output decisions, is called:
A. monopolistic competition.
B. oligopoly.
C. pure monopoly.
D. pure competition.
Answer: B
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Government's use of eminent domain is a solution to
A) the problem of negative externalities. B) potential monopolization of a market. C) the holdout problem. D) the free-rider problem.
At the end of World War II many European countries were rebuilding and so were eager to buy capital goods and had rising incomes. We would expect that the rebuilding increased aggregate demand in
a. both the United States and Europe. b. the United States but not Europe. c. Europe, but not the United States. d. neither the United States, nor Europe.
After World War II, which of the following about the value of homes is not true?
A. It remained relatively unaffected by inflation. B. They were unaffected by recessions until the 2000s. C. On average they did not fall for 60 years. D. They seemed immune to the business cycle.
Ceteris paribus, a decrease in the number of firms selling calculators will result in
A. A decrease in the supply of calculators. B. A decrease in the demand for calculators. C. An increase in the supply of calculators. D. An increase in the demand for calculators.