If one of the nation's leading banks raises the prime rate of interest by a half of a percent, and within 24 hours all of the other U.S. banks raise their prime rates by the same percentage, this behavior would be
A. an example of covert collusion.
B. proof of the U.S. bank cartel at work.
C. an example of illegal cutthroat price competition at work.
D. an example of price leadership.
D. an example of price leadership.
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Is the monopolist supply decision more complicated than that of competitive supply?
A. Yes, because the monopolist can choose its price, and the perfect competitor cannot. B. No, because they are both price takers. C. No, because the market determines the quantity for the monopolist. D. No, because the market determines the price for both firms.
An appreciation of the British pound relative to the euro will cause England's:
a. Aggregate supply and aggregate demand to rise, which causes prices to rise and real GDP to fall. b. Aggregate supply to rise and aggregate demand to fall, which causes prices to rise and real GDP to fall. c. Aggregate supply to rise and aggregate demand to fall, which causes prices to fall and real GDP to change by an uncertain amount. d. Aggregate supply and aggregate demand to fall, which causes prices to rise and real GDP to fall.
Which of the following could not be considered price discrimination?
A. Airlines offering super-saver fares to everyone. B. Movies offering cheap matinees. C. Senior citizen's discounts. D. The issuing of discount tickets to week-end travelers.
If individuals were fully rational, financing services such as social networks and search engines by selling data collected on consumers would be:
A. less of a problem than otherwise because consumers would not be inappropriately influenced by advertising. B. less of a problem than otherwise because consumers would not be inappropriately influenced by government. C. more of a problem than otherwise because consumers would not be inappropriately influenced by advertising. D. more of a problem than otherwise because consumers would not be inappropriately influenced by government.