A prediction from the kinked-demand curve model of noncollusive oligopoly is that, for an individual firm, small changes in:
A. demand will not lead to changes in price or output.
B. marginal cost will not lead to changes in price or output.
C. marginal revenue will lead to changes in price and output.
D. marginal cost will lead to changes in price and output.
Answer: B
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A flawed argument for protection from foreign trade is that
i. tariffs save domestic jobs. ii. tariffs protect the national culture. iii. quotas bring about diversity and stability. A) i only B) ii only C) iii only D) i and ii E) i, ii, and iii
Perfect price discrimination is also referred to as:
A) first-degree price discrimination. B) second-degree price discrimination. C) third-degree price discrimination. D) fourth-degree price discrimination.
How many dollars would it cost to buy an Edinburgh Woolen Mill sweater costing 50 British pounds if the exchange rate is 1.50 dollars per one British pound?
A) 50 dollars B) 60 dollars C) 70 dollars D) 80 dollars E) 75 dollars
Under a fixed exchange rate system, an expansionary fiscal policy such as an increase in government expenditures will lead to a(n) ________ in real GDP and a ________ inflation rate
A) increase; higher B) increase; lower C) decrease; higher D) decrease; lower