Strategic behavior
A) is found in competitive markets.
B) is a form of product differentiation.
C) involves the interdependence of actions.
D) is only present when there are price fixing agreements.
C
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The New York Stock Exchange (NYSE) originated as:
A. a decentralized electronic market made up of dealers all over the world. B. a financial market where nearly 100 million shares of stock are traded every business day. C. the only centralized stock exchange in the world. D. an example of a centralized exchange.
Refer to the above graph. Assume that the economy initially has a price level of P2 and output level Q2. If the price level is downwardly inflexible and the government decides to adopt a contractionary fiscal policy, what would most likely be the new equilibrium price level and output?
A. P2 and Q4 B. P1 and Q1 C. P1 and Q3 D. P2 and Q2
The period of time in which the level of output moves from a trough to a peak is called a:
A. recovery or expansion. B. depression. C. contraction or recession. D. plateau.
Which of the following statements regarding price elasticity of supply and the length of time for adjustment is FALSE?
A. The shorter the time period for adjustment, the smaller is the price elasticity of supply. B. The longer is the time period for adjustment, the greater is the price elasticity of supply. C. The longer is the time period for adjustment, the less is the extent to which resources flow into (or out of) an industry through expansion (or contraction) of existing firms. D. The longer is the time period for adjustment, the greater is the extent to which entry or (exit) of firms increases or (decreases) production in an industry.