When the price and output decisions of one firm include the possible price and output reactions of the firm's rivals, the market is
A. a monopoly characterized by differentiated products.
B. an oligopoly characterized by mutual interdependence.
C. perfectly competitive characterized by collusion.
D. monopolistically competitive characterized by nonprice competition.
Answer: B
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The demand curve for bonds would be shifted to the left by
A) an increase in expected returns on other assets. B) a decrease in the information costs of bonds relative to other assets. C) a decrease in expected inflation. D) an increase in the liquidity of bonds relative to other assets.
Which of the following would cause a rightward shift in the demand curve for gasoline?
I. A large increase in the price of public transportation. II. A large decrease in the price of automobiles. III. A large reduction in the costs of producing gasoline. A) I only B) II only C) I and II only D) II and III only E) I, II, and III
If a state government wants to collect the maximum tax revenue from a unit excise tax, which of the following would they tax?
A) cigarettes B) beef hamburgers C) luxury cars D) concert t-shirts
The assumptions needed for the Coase theorem to work:
A. are often observed in the real world. B. often do not hold true in the real world. C. never hold true in the real world. D. always hold true in the real world.