During the mid-2000s, the average price of a used car fell by nearly $500 and the quantity sold nation-wide decreased by several thousand each year. This set of results is a contradiction of the law of demand
Indicate whether the statement is true or false
FALSE
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Increasing wage inequality results when international trade leads to ________ wages for workers in exporting industries and ________ wages for workers in importing industries.
A. lower; no change in B. lower; higher C. higher; higher D. higher; lower
Collusion occurs when
A) there is an agreement among firms to charge the same price or otherwise not to compete. B) firms refuse to follow their price leaders. C) a firm chooses a level of output to maximize its own profit. D) two firms' price and output decisions come into conflict.
To justify infant industry protection:
a. firm must move down its average cost curve to produce more output. b. a firm's average cost curve must shift upward over time. c. a firm's total cost curve must shift leftward over time. d. a firm's average cost curve must shift downward over time.
When Goodyear increases its production when Michelin reduces its production, Goodyear is playing a
A) negative-sum game. B) cooperative game. C) non-cooperative game. D) reaction function game.