Which of the following is a unique characteristic of the oligopolistic market structure?
a. low barriers to entry
b. a large number of firms producing highly differentiated products that are complements to each other
c. product differentiation among the products produced by individual firms
d. mutual interdependence among firms in demand, and thus, in price decisions
D
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As a result of losing his job, Uncle Roy dropped his cable TV service and instead bought a new iPod. For Uncle Roy,
A) cable is an inferior good and the iPod is a normal good. B) cable is a normal good and the iPod is an inferior good. C) both cable and the iPod are normal goods. D) both cable and the iPod are inferior goods. E) cable and the iPod are complementary goods.
National saving is defined as the amount of
A) business saving. B) household saving. C) business saving and household saving. D) private saving and government saving.
Suppose capital and labor are perfect substitutes in a long-run production process. If labor costs $15 per hour and the rental rate of capital is $20 per hour, what can we say about the profit maximizing choice of labor and capital inputs?
A) We will only use labor in the production process B) We will only use capital in the production process C) We will use equal amounts of capital and labor D) The optimal capital-labor ratio is 0.75-to-1.
Fiscal policy is the use of government spending and taxation to make changes in the level of national income
Indicate whether the statement is true or false