The key characteristic of an oligopolistic market is:
A) production of a homogeneous product.
B) mutual interdependence among firms in the market.
C) the absence of market power by any one firm.
D) ease of entry into, and exit out of, the market.
B
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When there is an expansionary gap, inflation will ________, in response to which the Federal Reserve will ________ real interest rates, and output will ________.
A. decline; lower; expand B. increase; raise; decline C. decline; lower; decline D. decline; raise; decline
Assume that you know the following cost information about Fred's widget company: Its fixed cost is $9, and its total variable cost is $6 for 1 unit; $11 for 2; $ 15 for 3; 20 for 4; and 26 for 5 . Given the above information, a. the marginal cost of the third unit is greater than the marginal cost of the first unit. b. the marginal cost of the fourth unit is the same as the marginal cost of the
second unit. c. the average variable cost of four units is the same as for three units. d. both (b) and (c) are correct.
_____, the lesser will be the effect of an increase in government spending on real GDP
a. The smaller the crowding-out effect b. The smaller the percentage of government spending financed by tax increases c. The larger the government budget surplus d. The more rapidly money is converted into goods e. The steeper the aggregate supply curve
In order to bring GDP and national income into accord,
a. add indirect business taxes to national income and we have GDP b. add depreciation of capital and indirect business taxes to GDP and we have national income c. subtract depreciation of capital from GDP and we have national income d. subtract depreciation of capital and proprietor's income from GDP and we have national income e. subtract depreciation of capital and indirect business taxes from GDP and we have national income