Firms in an oligopoly often do not collude with each other because ________
A) collusion lowers profit
B) collusion increases the cost of production
C) collusion is illegal
D) collusion increases competition
C
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When a society achieves allocative efficiency, it
A) is not achieving production efficiency. B) is producing that combination of goods and services that society values most highly. C) might or it might not be producing at a point on society's PPF. D) is producing a combination of goods and services whose marginal cost exceeds their marginal benefit. E) is producing the combination of goods and services for which marginal benefit exceeds marginal cost by as much as possible.
According to classical economists, government intervention is:
a. necessary to maintain a stable price level in the long run. b. necessary to maintain a stable price level in the short run. c. necessary to maintain full employment in the long run. d. necessary to maintain full employment in the short run. e. not necessary to maintain full employment.
Suppose the supply of dollars increased from S1 to S2 in Figure 36.3. As a result of this change,
A. The Swiss franc will lose value worldwide. B. A trade surplus will be created in Switzerland. C. Swiss chocolate imports to the United States will be lower-priced. D. U.S. computer exports to Switzerland will be lower-priced.
When OPEC raised the price of oil, it created a:
A. demand-pull inflation. B. cost-push inflation. C. demand-push inflation. D. cost-pull inflation.