Fluctuations in economic activity can result from
A) increases in the price of oil. B) wars.
C) the loss of crops due to drought or insects. D) all of the above.
D
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"Market power" refers to a firm's ability to:
A. influence the price its competitors charge. B. undercut its competitors' prices. C. raise its price without losing all of its sales. D. force consumers to buy high-priced products.
If crowding out exists, contractionary fiscal policy will cause the aggregate demand curve to shift in by more than indicated by the government spending multiplier
a. True b. False Indicate whether the statement is true or false
In an oligopoly market, the firms would earn the highest profit if they
A. chose to produce an output equal to the perfectly competitive output level. B. chose to produce the output equal to the monopoly output level. C. chose to ignore the implications of game theory. D. chose to ignore the actions of rival firms.
Explain the concept of market failure