The Chamberlin model has been criticized for all but which one of the following reasons?
A. The model adds little to the perfect competition conclusions.
B. The concept of an industry group is ambiguous in the model.
C. The model predicts no long-run profits but does not account for entry and exit in markets.
D. Consumers are not as willing to switch from one product another for slight price changes.
Answer: C
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Suppose the price elasticity of demand for your economics textbook is -1 . If the publisher raises the price by 5 percent,
a. revenues will rise 5 percent b. quantity demanded will rise 5 percent c. total revenues will not change d. revenues will fall e. revenues will fall 5 percent
Refer to Figure 12.1. What is the Nash equilibrium?
A. James chooses Up, Theodore chooses Left
B. James chooses Up, Theodore chooses Right
C. James chooses Down, Theodore chooses Left
D. James chooses Down, Theodore chooses Right
A relative measure of the importance of trade is
A) the dollar value of trade. B) trade as a percentage of GDP. C) the dollar value of trade adjusted for inflation. D) trade as a percentage of investment. E) None of the above.
One problem with using discount rate changes to influence deposit creation or destruction is that
a. small changes in the rate do not have much impact b. the discount rate changes are covert c. banks like to borrow from the Fed, and they will borrow even more after the changes d. the Fed must change the discount rate each time they meet e. banks do not have enough control over their demand deposits