In an oligopoly with a collusive agreement, the total industry profits will be smallest when
A) all firms comply with the agreement.
B) one firm cheats on the agreement and the other firms do not cheat.
C) all firms cheat on the agreement.
D) the firms act as a monopoly.
C
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Refer to Table 2-9. What is Thailand's opportunity cost of producing one pound of rice?
A) 60 wristwatches B) 20 wristwatches C) 5 wristwatches D) 0.05 units of a wristwatch
An increase in the expected future marginal product of capital would cause the IS curve to
A) shift up and to the right. B) shift down and to the left. C) remain unchanged. D) remain unchanged if firms face borrowing constraints; otherwise, shift down and to the left.
A decrease in the supply of money will, according to the quantity theory of money, lead to
A) a higher price level. B) a higher nominal Gross Domestic Product (GDP). C) a lower real Gross Domestic Product (GDP). D) a lower price level.
If the relative price of a concert ticket is three times the price of a meal at a good restaurant, then the opportunity cost of a concert ticket can be measured by the
a. slope of the budget constraint. b. slope of an indifference curve. c. marginal rate of substitution. d. income effect.