Some low-income countries generally remain poor because
a. their institutional arrangements and policies often discourage productive activity and reduce the potential gains from specialization and exchange.
b. they are oppressed by developed nations that benefit from the cheap goods available from countries with low wage rates.
c. they are poorly endowed with natural resources, which are essential for long-term growth.
d. when the average income level is low, workers have little incentive to earn higher incomes.
A
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Refer to the scenario above. If Joseph prefers fairness to money, ________
A) he will not accept any offer made by Phillip B) he will always accept any offer made to him C) he will accept the offer if offered an equal share of the money D) Phillip will offer the minimum amount of money to Joseph
Other things equal. an open market purchase of government securities by the Fed will not result in which of the following?
a. increased bond prices b. a reduced volume of loans issued by the commercial banking system c. decreased interest rates d. an increase in the price level
One reason why the smaller oligopolistic firms accept godfather pricing in unbalanced oligopoly is because they can
a. differentiate their products more fully in order to increase market power b. engage in mergers if the godfather chooses the wrong price c. together influence the price leader (godfather firm) to share industry profit more equally d. enjoy a higher economic profit than they would otherwise e. survive a price war without too many losses
Advertising never makes sense for an oligopolistic firm
a. True b. False Indicate whether the statement is true or false