Oligopoly is a situation when there
A. are too many firms in the industry and there is excess capacity.
B. is one large firm and many smaller firms forming a competitive fringe.
C. is one firm in the industry that is large relative to the size of the economy.
D. are a few large firms in the industry.
Answer: D
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In the Mundell-Fleming model, all of the following are true EXCEPT:
a. the intersection of the IS and LM curves determine the equilibrium exchange rate. b. the BP curves position is determined by the exchange rate. c. the policy choice between fixed and floating exchange rates shifts the BP curve. d. the extent of capital mobility determines the slope of the BP curve. e. all of the above are true.
A decrease in demand would be represented by
A) the price of a good going from $3 to $4. B) an increase in the cost of resources used to produce the good. C) a movement along the demand curve. D) a shift of the demand curve to the left.
The balance of goods and services is
a. the same as the merchandise trade balance, since services cannot be traded b. equivalent to the trade balance c. the value of all goods and services exported minus the value of all goods and services imported d. the value of all tangible products exported minus the value of all tangible products imported e. the value of all tangible products exported minus the value of all tangible products imported, and transactions to finance the difference
Economy A: gross investment equals depreciation Economy B: depreciation exceeds gross investment Economy C: gross investment exceeds depreciation Other things equal, the above information suggests that the production capacity in economy:
a) B is growing more rapidly than either A or C. b) A is growing more rapidly than either B or C. c) A is growing less rapidly than economy B. d) C is growing more rapidly than economy B.