Oligopoly occurs when
a. a few firms sell many different products.
b. a few firms sell to a few large buyers.
c. many firms dominate a single market.
d. a few firms dominate a single market.
d
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If the income tax rate is 20 percent and the tax rate on consumption expenditure is 15 percent, then the tax wedge is
A) 2 percent. B) 35 percent. C) 300 percent. D) 5 percent. E) None of the above answers is correct.
Which of the following statements best defines the economics of the so-called superstar effect in the labor market?
a. This effect will result in cases in which individuals with large productivity differences receive vastly different compensation. b. This effect occurs in cases in which individuals with small productivity differences receive very small differences in compensation. c. This effect occurs when the firm hiring the superstar simply does not understand the term marginal-revenue product. d. This effect occurs in cases in which individuals with small productivity differences receive vastly different compensation. e. This effect usually occurs in industries in which a labor union has far-reaching powers.
Fix-High, a car service chain, immediately needs to raise $16 million to fund the construction of four new service centers. If Fix-High's owners wish to borrow funds without sharing the ownership of the firm, they should: a. liquefy their assets
b. take out a bank loan. c. issue stocks of their firm. d. wait till they make a profit of $16 million.
The sound economic institutions and policies needed for economic growth and prosperity
a. emerge from the political process, if they emerge at all. b. are unaffected by political decision-making and constitutional rules. c. are virtually guaranteed to emerge, if democracy becomes the form of government in a nation. d. can only emerge from a democracy