Which of the following is a characteristic of oligopoly?
A) easy entry and exit
B) many firms
C) strategic dependence
D) horizontal market demand curve
Answer: C
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How has the pattern of trade changed in the United States since 1960? What are the types of goods that are causing the shift in the balance of imports and exports in the United States?
What will be an ideal response?
As the number of firms in an oligopoly ____, the oligopoly becomes more ____
a. increase; competitive b. increase; uncompetitive c. decrease; competitive d. decrease; like monopolistic competition
Antitrust issues can be political firestorms. In order to accomplish their economic missions regarding monopolies, regulation, and antitrust policy without incurring the scrutiny of the press and public, many presidents choose to
a. ignore the issue b. adopt the rule of reason c. adopt the per se rule d. manipulate the budgets of enforcement agencies e. promote policies outlined in the Clayton Act
How does an increase in government transfer payments affect aggregate demand?
A. It has the same effect as a tax increase, which lowers AD with a larger multiplier than a spending decrease. B. It has the same effect as a tax cut, which increases AD but with a smaller multiplier than a change in spending. C. It has the same effect as a spending increase, which increases AD with a larger multiplier than a tax cut. D. It has the same effect as a spending decrease, which increases AD with a larger multiplier than a spending decrease.