The price charged by oligopolists will
a. equal the equilibrium price in a price-takers market if the oligopolists collude.
b. equal the monopoly price if the oligopolists do not collude.
c. generally fall between the monopoly and competitive market equilibrium prices.
d. be the same whether the oligopolists cooperate with one another or not; only profit is affected.
C
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Government-backed deposit insurance increases the ________
A) Willamette torsion effect B) adverse selection problem C) moral hazard problem D) the prudential contagion problem
Monetarist and Keynesian theories of money demand differs in that
a. Monetarists assumes that the demand for money is highly inelastic while Keynes assumes money demand is elastic. b. Monetarists assumes that the money demand function is highly stable while Keynes assumes it is unstable. c. Monetarists assumes that there is only a transactions demand for money while Keynes also considers the precautionary and speculative demands for money. d. Monetarists assume that the proportion of income held in theform of money is constant while Keynes believes it varies. e. all of the above.
In the United States, because men on average earn more than women, the substitution effect tends to outweigh the income affect when wages increase.
Answer the following statement true (T) or false (F)
If the market demand increases for a good sold in a perfectly competitive market, individual firms in the market:
A. will be able to charge a higher price for their product. B. will need to lower price in order to remain competitive. C. will not be able to change their price. D. will begin earning economic losses.