An oligopoly with a dominant price leader will produce a level of output
A. between that which would prevail under competition and that which a monopolistic competitor would choose in the same industry.
B. that would prevail under competition.
C. equal to what a monopolist would choose in the same industry.
D. between that which would prevail under competition and that which a monopolist would choose in the same industry.
Answer: D
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If a nation has a comparative advantage in the production of good X, this means that the nation
A. cannot benefit by producing and trading this product. B. gives up less of alternative goods than other nations in producing a unit of X. C. has a production possibilities curve identical to those of other nations. D. is not subject to opportunity costs in producing good X.
As an economy produces more different types of goods:
A. money becomes less useful as a standard of value. B. it is more difficult to quote prices if the economy does not use money. C. money becomes less useful as a unit of account. D. the number of relative prices decreases.
The current (2013) chairperson of the Board of Governors of the Federal Reserve System is:
A. Lawrence Summers. B. John B. Taylor. C. Alan Greenspan. D. Ben Bernanke.
A specific tax of $1 per unit of output will affect a firm's
A) average total cost, average variable cost, average fixed cost, and marginal cost. B) average total cost, average variable cost, and average fixed cost. C) average total cost, average variable cost, and marginal cost. D) marginal cost only.