Answer the following statements true (T) or false (F)
1) Tacit collusion is more likely to occur in the commercial airline market than the fast food market.
2) Price visibility can work both for and against tacit collusion.
3) When firms have a tacit collusion agreement, if prices are highly visible, this decreases the cost of cheating.
4) The primary function of meet-the-competition clauses is to win customers.
5) Most-favored-customer clauses can help support tacit collusion.
1) TRUE
2) TRUE
3) FALSE
4) FALSE
5) TRUE
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If the price level increases,
A) the buying power of your checking accounts rises with it. B) the economy tends to grow faster. C) there is no effect on buying power. D) the buying power of your checking account falls.
Suppose Dave always uses two lemon wedges with his glass of iced tea. Dave's indifference curves for lemon wedges and iced tea are
a. bowed inward. b. bowed outward. c. straight lines. d. L shaped.
Which of the following is NOT an objective of government?
(a) High and stable economic growth. (b) Low unemployment. (c) High Inflation. (d) Positive Balance of Payments
In 2014, some European countries were dealing with a recession. Workers who were laid off in those countries due to the economic downturn would be
A. cyclically unemployed. B. seasonally unemployed. C. structurally unemployed. D. frictionally unemployed.