Refer to the above figure. Ajax and Greenco are oligopolists. Above you are given the payoff matrix for the two firms giving the payoff associated with different pricing strategies. What is the dominant strategy for Greenco?
A. high price
B. low price
C. There is no best strategy.
D. Not enough information is given to determine the best strategy.
Answer: B
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Between 2015 and 2016, the CPI of a small nation rose from 182 to 185. If household incomes rose by 3% during that period of time, which of the following is true?
A) The purchasing power of household income remained constant between 2015 and 2016. B) The purchasing power of household income rose between 2015 and 2016. C) The purchasing power of household income fell between 2015 and 2016. D) The CPI cannot be used to determine how the purchasing power of household income changes over time.
In the IO perspective, it is important to enter an industry with
a. High barriers to entry b. Low buyer power c. Low supplier power d. All of the above
In a socialistic system, most economic decisions are made by:
A. firms. B. consumers. C. stockholders. D. government planners.
Competing macroeconomic models may be hard to test because people may change how they react when economic policies are changed.
Answer the following statement true (T) or false (F)