Dominant price leadership exists when
A) one firm drives the others out of the market.
B) the dominant firm decides how much each of its competitors can sell.
C) the dominant firm establishes the price at the quantity where its MR = MC, and permits all other firms to sell all they want to sell at that price.
D) the dominant firm charges the lowest price in the industry.
C
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Bobby was researching the economic growth of a country between 2006 and 2011. Using 2006 as the base year, he calculated a twelve percent increase for real GDP and a ten percent increase for nominal GDP. His results indicate that
A) he made an error when calculating nominal GDP. B) the quantity of goods and services produced decreased over the period. C) the quantity of goods and services produced increased and prices decreased over the period. D) the quantity of goods and services produced and prices both decreased over the period. E) the quantity of goods and services produced did not change and prices decreased over the period.
Decrease in stock market wealth will ________ the expenditure curve:
A) decrease. B) increase. C) not change. D) none of the above.
According to the text, the 17 countries with high degrees of economic freedom
A) account for 81 percent of total world output. B) account for less than 25 percent of total world output. C) have the weakest economies. D) have low productivity.
Why did the Bretton Woods system ultimately break down?
a. The refusal of OPEC countries to accept payment for oil in gold. b. The refusal of surplus countries to devalue as required by law. c. An inability to devalue the U.S. dollar despite chronic payments deficits. d. An inability to adequately measure balance of payments surpluses and deficits.