Which of the following is a distinguishing characteristic of oligopoly?
A) A large number of firms compete.
B) Each firm's actions influence the profits of all the other firms.
C) Firms are free to enter and exit the industry.
D) Natural barriers cannot prevent the entry of new firms.
B
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Taxes listed as Federal Insurance Contribution Act taxes on the employee paystub are ________
A) payroll taxes B) value-added taxes C) income taxes D) excise taxes
Explain the law of diminishing returns
What will be an ideal response?
According to new growth theory,
A) growth in real GDP per capita occurs only if there are increasing returns. B) technological change is influenced by economic incentives. C) economic growth is determined by forces outside the control of the market system. D) centrally-planned economies are the most efficient.
The choice of a voter to remain uninformed because the marginal cost of obtaining information is greater than the marginal benefit from obtaining knowledge is called:
A. irrational ignorance. B. rational ignorance. C. collective interest. D. choice.