Three firms that are successful in colluding to raise their prices must
a. lose profits
b. announce any price changes to the government
c. restrict output
d. increase advertising to earn a profit
e. expand production
C
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If the Chinese government were to begin selling large quantities of its dollar-denominated assets, how might that affect China's economy and the U.S. economy?
What will be an ideal response?
If the sellers in the cigarette industry formed a cartel and decided to set price along a straight-line downward-sloping demand curve, which point would they choose if they wanted to gain the highest total revenue?
a. The point nearest the vertical axis, where the price is highest. b. The point nearest the horizontal axis, where quantity demanded is greatest. c. One of the points higher up on the demand curve, where demand is elastic. d. One of the points lower down on the demand curve, where demand is inelastic. e. The point of unit elasticity, in the middle of the demand curve.
If the Congress passes legislation to increase government spending to counter the effects of a recession, then this would be an example of a(n):
a. Supply-side fiscal policy b. Contractionary fiscal policy c. Expansionary fiscal policy d. Nondiscretionary fiscal policy
If two goods are complements:
A. an increase in the price of one will increase the demand for the other. B. they are necessarily inferior goods. C. they are consumed independently. D. a decrease in the price of one will increase the demand for the other.