The price effect is smaller when there:
A. are fewer firms.
B. are more firms.
C. is more demand.
D. is less demand.
B. are more firms.
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Most economists believe that price indices
A) understate inflation and understate growth in real GDP. B) understate inflation and understate growth in nominal GDP. C) overstate inflation and understate growth in real GDP. D) overstate inflation and understate growth in nominal GDP.
If the Fed buys government securities, other things the same, the exchange rate ________ and U.S. exports ________
A) falls; decrease B) rises; increase C) falls; increase D) rises; decrease E) falls; do not change because they are autonomous expenditure
Which one of these is not an economic function of the federal government?
A. redistribution of income B. stabilization C. economic regulation D. All are economic functions of the federal government.
One would expect that collusion among oligopolistic producers would be easiest to achieve in which of the following cases?
A. A rather large number of firms producing a differentiated product. B. A very small number of firms producing a differentiated product. C. A rather large number of firms producing a homogeneous product. D. A very small number of firms producing a homogeneous product.