Which of the following is an example of countervailing power at work?
a. The government monopolizes the United States Postal Service.
b. Ford and General Motors join forces to raise prices.
c. Compaq and IBM merge.
d. Microsoft lowers price below cost to drive rivals out of business.
e. Big business is met across the bargaining table by big labor.
E
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The opportunity cost of holding money is measured by the rate of interest
a. True b. False Indicate whether the statement is true or false
Which one of the following statements is FALSE?
A. The relative price of a good is its price measured relative to the price of other goods. B. When the price of beer goes up by the same proportion as the prices of all other goods, the relative price of beer does not change. C. The nominal price of a good is its price measured in current dollars. D. Generally, what matters most to consumers is what a good costs in dollars.
"Oligopoly is the only market structure in which rivalry among firms takes place." Do you agree or disagree? Why?
What will be an ideal response?
For a perfectly competitive industry, a decline in technology will cause
A. a movement up the short-run industry supply curve. B. the industry short-run supply curve to shift to the left. C. a movement down the short-run industry supply curve. D. the industry short-run supply curve to shift to the right.