Which of the following is true of price leadership?
a. Price leadership requires that firms collude.
b. Price leadership will not exist when there is a dominant firm.
c. Price leadership may come into being as firms recognize the benefits of not engaging in competitive pricing.
d. Price leadership is most likely to arise when no firm has a history of making accurate evaluations of market conditions.
e. Price leadership is never used in the real world.
c
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In what way is development economics greater in scope than traditional economics?
What will be an ideal response?
Which of the following statements about incentives is true?
a. Changing one incentive can result in several unseen effects. b. Understanding how people respond to incentives helps government planners organize the economy. c. Fair-minded people who care about others will not be affected by incentives. d. Emphasizing incentives ignores altruistic nonmonetary values.
Among these countries, which has the lowest hourly wage and fringe benefits in manufacturing?
A. Germany B. Britain C. Canada D. United States
A rancher raises alpaca. Once a year, he shears them and sells the raw wool to a processor who spins it into yarn. The yarn is then sold to a mill which produces and sells alpaca sweaters. In calculating GDP we would count
A. only the yarn and the sweaters. B. only the sweaters. C. the raw wool, the yarn and the sweaters. D. only the raw wool and the yarn.