If marginal product is decreasing, then it must be the case that
A. average product is greater than marginal product.
B. average product is less than marginal product.
C. average product is decreasing.
D. both a and c
E. none of the above.
Answer: E
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What will be an ideal response?
From the new classical perspective, the disinflation in the early 1980s resulted in a significant recession because
a. the policy change to disinflation was unanticipated. b. the policy was not credible. c. inflationary expectations were backward looking. d. None of the above e. both a and b.
The key difference(s) between monopoly and oligopoly is
A. there must be product differences in oligopoly. B. that there are two in oligopoly rather than one competitor in a monopoly. C. there are no differences between oligopoly and a monopoly. D. there are no barriers to entry with oligopoly.
Compare and contrast the prisoners’ dilemma and the oligopolists’ dilemma.
What will be an ideal response?