Describe the characteristics of an oligopoly
What will be an ideal response?
There are a small number of firms that act interdependently. They are tempted to form a cartel and collude to increase profits. They can compete on price only (if they produce identical products) or compete on price, product quality and marketing (if they produce slightly different products). Natural or legal barriers prevent the entry of new firms.
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Assume health insurance is provided universally by the government. This would
A) force every taxpayer to bear the costs of adverse selection. B) force every taxpayer to bear the costs of moral hazard. C) force the government to deal with adverse selection problems. D) force foreign governments to deal with moral hazard problems.
A monopolist price discriminates by
a. charging different buyers different prices for different products b. charging different buyers different prices for the same product c. selling at a price below average total cost d. selling at a price below marginal cost e. selling at a price above marginal revenue
By 2012, the dollar value of the debt:
A. past 100 percent of GDP. B. the lowest in the U.S. history. C. was reduced to $500 billion. D. back down to 40 percent of GDP.
The answer is: "A geographic area in which exchange rates can be fixed or a common currency used without sacrificing domestic economic goals." What is the question?
A) What is a flexible exchange rate system? B) What is a managed float area? C) What is a purchasing power parity area? D) What is an optimal currency area?