If two firms use a tit-for-tat scheme to maintain cartel pricing, and one firm chooses a low price in the current time period, then:
A. that firm will also choose a low price in the next time period.
B. that firm will also choose a high price in the next time period.
C. the other firm will choose a low price in the next time period.
D. the other firm will choose a high price in the next time period.
Answer: C
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National health insurance programs:
A. can increase use of health clinics versus traditional village doctors, who often have no training. B. are starting to be implemented in poorer areas like Ghana to increase access to health care. C. still face challenges in some areas to provide good, high quality care. D. All of these statements are true.
The idea that tradeoffs have to be made when resources are scarce is reflected in the fact that:
A. points below the production possibilities curve are efficient. B. the production possibilities curve has a negative slope. C. the slope of a linear production possibilities is constant. D. points below the production possibilities curve are inefficient.
Which of the following is common to both tariffs and quotas?
A) Tariffs and quotas are both used as a means to increase government revenue. B) Tariffs and quotas both increase economic efficiency. C) Tariffs and quotas are both designed to reduce foreign competition faced by domestic firms. D) Tariffs and quotas are both examples of voluntary export restraints.
The Vuvuza Corporation currently has 10 million shares of stock outstanding, the stock is trading for $42 per share, and its stock of capital goods is valued at $70 million. The Tobin's q value for the Vuvuza Corporation is
A) 0.14. B) 1.7. C) 6. D) 7.