Which statement concerning the kinked demand curve model of oligopoly is false?
A. It addresses the question of price "stickiness."
B. It assumes when one oligopoly raises the price, all others will follow.
C. The portion of the demand curve above the "kink" is more elastic than the portion below.
D. The firm's marginal costs can sometimes shift without changing the profit-maximizing price and output.
B. It assumes when one oligopoly raises the price, all others will follow.
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Refer to the table above. If there is no statistical discrepancy, the sum of all three balance of payments accounts equals
A) -$20 billion. B) +$220 billion. C) +$20 billion. D) zero E) +$200 billion.
Another term to describe the normal rate of return on capital is the
A) fixed cost of capital. B) depreciation cost of capital. C) opportunity cost of capital. D) monopoly rent.
Credit cards such as Visa and Mastercard are
a. money because they serve as a medium of exchange: it's much like "if it looks like a duck, walks like a duck, and quacks like a duck . . . it's a duck!" b. money because they are issued by financial institutions, such as banks, and are accepted almost everywhere in place of currency c. accepted by merchants as if they were money, and therefore they are money d. as liquid as currency, and therefore they are money e. convenient but not money because what you are really using when you use a card is your checking account which is the money
For a given level of inflation, if there is a greater reluctance by foreigners to purchase domestic goods, then the ________ shifts ________.
A. aggregate demand curve; left B. short-run aggregate supply line; upward C. short-run aggregate supply line; downward D. aggregate demand curve; right