A number of firms who collude to make collective production decisions about quantities or prices is called:
A. a joint monopoly.
B. a cartel.
C. a duopoly.
D. market power.
Answer: B
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Which of the following is NOT an advantage of inflation targeting?
A) reduction of the time-inconsistency problem B) increased monetary policy transparency C) There is an immediate signal on the achievement of the target. D) consistency with democratic principles
Which of the following is not a requirement for markets to be efficient?
a) perfect information b) rational behavior by all agents c) complete markets d) competition in production e) the absence of transaction costs
When a pharmaceutical firm spends millions of dollars to lobby and convince Congress to extend the number of years a firm is awarded patent protection, then the pharmaceutical firm is engaging in:
A. rent seeking. B. fraud. C. price discrimination. D. marginal cost pricing.
Figure 7.5
The consumer must decide how to split $20 between spending and saving.Refer to Figure 7.5. If the consumer is subject to present bias, he/she will consume ________ now and save ________ to maximize utility.
A. $12; $8 B. $18; $2 C. $12; $2 D. $0; $20