When competing firms have a commitment strategy, it is called:
A. collusion.
B. predatory pricing.
C. competition.
D. competitive cooperation.
Answer: A
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According to the traditional Keynesian analysis, if the government increases spending and pays for all of it by raising current taxes, then
A) a budget surplus will occur. B) aggregate demand will increase. C) a budget deficit will occur. D) aggregate demand will decrease.
Answer the following statements true (T) or false (F)
1. In a market economy, resources are allocated by the government. 2. In a market system, the government enforces laws ensuring that private enterprises and conditions of competition will prevail. 3. The most common type of business in the United States is the corporation. 4. The vast majority of U.S. businesses have more than 500 employees each.
There has been much discussion of deregulating electricity and natural gas delivery companies in the United States. Discuss the likely effect of deregulation on prices in these two industries
The key assumption that accompanies the use of numbers for measuring utility is that:
A. people make consumption decisions. B. utility can be perfectly measured. C. utility cannot be measured by an outside party. D. individuals choose based on their preferences.