When oligopolistic firms in an industry form a cartel, then it is most likely that
A. both industry output and prices will decrease.
B. both industry output and prices will increase.
C. industry output will decrease while prices will increase.
D. industry output will increase while prices will decrease.
Answer: C
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To achieve long-run equilibrium in an economy with a recessionary gap, without the use of stabilization policy, the inflation rate must:
A. not change. B. increase. C. decrease. D. either increase or decrease depending on the relative shifts of AD and AS.
In most countries in South America, the legal driving age is 18
If the legal driving age in the United States was raised from 16 to 18, how would this affect the market for new and used automobiles? What would happen to the equilibrium price and quantity of new and used automobiles?
Quinn's income to spend each month on two normal goods, bowling or eating out, is $100. It costs $10 to bowl for the night, and it costs $20 for Quinn to eat at a restaurant. Quinn currently consumes four nights of bowling and three meals at a restaurant. If the price of bowling increased to $15, the income effect would predict:
A. Quinn would consume more of each good. B. Quinn would consume less bowling and more meals out. C. Quinn would consume less of each good. D. Quinn would consume more bowling and less meals out.
Good current economic conditions incent people to save _______, and a good outlook on future economic conditions incent people to save _________.
A. more; less B. more; more C. less; more D. less; less