The mutual interdependence that characterizes oligopoly arises because:
A. the products of various firms are homogeneous.
B. the products of various firms are differentiated.
C. each firm in an oligopoly depends on its own pricing strategy and that of its rivals.
D. the demand curves of firms are kinked at the prevailing price.
Answer: C
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Which of the following is consistent with diminishing marginal returns?
a. increasing labor by 10% and output increasing 10%. b. increasing labor by 10% and output prices increase by less than 10%. c. increasing labor by 10% and the marginal product of labor increasing 10%. d. increasing labor by 10% and output increasing by less than 10%.
Suppose that a worker in Country A can make either 10 iPods or 5 tablets each year. Country A has 100 workers. Suppose a worker in Country B can make either 2 iPods or 10 tablets each year. Country B has 200 workers. A bundle of goods that Country A could not make would be:
A. (500 iPods, 150 tablets). B. (500 iPods, 200 tablets). C. (500 iPods, 250 tablets). D. (500 iPods, 300 tablets).
In economics terminology, the process of accumulating money is investment
a. True b. False Indicate whether the statement is true or false
When the Fed lowers the required reserve ratio, it:
a. lowers the cost of borrowing from the Fed, encouraging banks to make loans to the general public b. raises the cost of borrowing from the Fed, discouraging banks from making loans to the general public. c. increases the amount of excess reserves that banks hold, encouraging them to make loans to the general public. d. increases the amount of excess reserves that banks hold, discouraging them from making loans to the general public. e. decreases the amount of excess reserves that banks hold, discouraging them from making loans to the general public.