When Pepsi is considering a price hike, it needs to consider how Coke may react. This situation is called:
A. mutual interdependence.
B. price leadership.
C. collusion.
D. monopolistic competition.
Answer: A
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Remittances refers to:
A. money paid to immigrants from hosting countries. B. money sent home from immigrants working abroad. C. the portion of money paid to immigrants that is not domestically taxed. D. the money immigrants get from the government once they immigrate to a nation.
If the quantity supplied of euro were greater than the quantity demanded, then the price of the
a. euro would rise. b. euro would fall. c. dollar would fall. d. euro would be in equilibrium.
________ does not address the questions related to optimal resource allocation.
a. Comparative-effectiveness analysis b. Economic efficiency c. Cost-benefit analysis d. Cost-effectiveness analysis
Refer to the graph above. Assume that the economy is in a recession with a price level of P 1 and output level Q 1. The government then adopts an appropriate discretionary fiscal policy. What will be the most likely new equilibrium price level and output?
a. P1 and Q1 b. P1 and Q3 c. P2 and Q2 d. P2 and Q4