Economists use game theory to analyze strategic behavior, which takes into account
A) monopoly situations.
B) the expected behavior of others and the recognition of mutual interdependence.
C) the price-taking behavior of oligopolists.
D) non-price competition.
E) that increased demand decreases the market power of the firms in the market.
B
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Which of the following would constitute contractionary monetary policy by the Fed?
a. An increase in income tax rates, a cut in government spending, and an elimination of the investment tax credit b. Open market sales of government securities, an increase in the discount rate, and an increase in reserve requirements c. An increase in tariffs on imported goods and a decrease in foreign aid d. Open market purchases of government securities, a cut in the discount rate, and an increase in reserve requirements
Governments can increase the likelihood of economic development by
What will be an ideal response?
Graphically, demand-pull inflation is shown as a ________.
A. rightward shift of the AD curve along an upsloping AS curve B. leftward shift of the AS curve along an upsloping AD curve C. leftward shift of the AS curve along a downward-sloping AD curve D. rightward shift of the AD curve along a downward-sloping AS curve
Sky-High Skywriters temporarily reduces its price when a new firm called The Sky's the Limit Skywriting enters the industry. Sky-High Skywriters is practicing
A. Predatory pricing. B. Retaliation. C. Price leadership. D. Cartel pricing.