An oligopoly model that describes formal collusion is the
a. kinked demand curve model
b. cartel model
c. cost-plus pricing model
d. game theory model
e. horizontal merger model
B
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A serious burden of a budget deficit and an increase in the national debt comes on the supply side because large budget deficits
A. discourage consumption and therefore lead to production cutbacks. B. lead to lower interest rates and therefore to excessive optimism by consumers and businesspeople. C. discourage investment and therefore may reduce the growth of the nation’s capital stock. D. discourage foreign investment and therefore limit employment opportunities.
Which of the statements below best explains how the use of money in an economy adds to the wealth of the society using it? Money creates wealth
A) because it is capital. B) by earning interest. C) by making specialization less costly. D) insofar as it is invested rather than consumed.
Refer to Figure 19-7. Which of the following is true?
A) Indian exports to the United States are more expensive at exchange rates greater than $.02/rupee than at the equilibrium exchange rate. B) U.S. imports are more expensive at exchange rates greater than $.02/rupee than at the equilibrium exchange rate. C) To achieve an exchange rate greater than $.02/rupee, the Reserve Bank of India must buy surplus dollars with rupees. D) The rupee is overvalued at exchange rates less than $.02/rupee.
Natural resources:
A. are production inputs that come from the earth. B. include lakes, mineral deposits, forests, and so on. C. can be split into two categories: renewable or nonrenewable. D. All of these are true statements.