Which of the following is true about an oligopoly equilibrium in comparison with equilibrium under similar circumstances but with perfect competition?
a. Output is smaller and price is lower than under perfect competition.
b. Output is smaller and price is higher than under perfect competition.
c. Output is larger but price is higher than under perfect competition.
d. Output is larger and price is lower than under perfect competition.
b
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If there is excess demand in a perfectly competitive market, does the government need to intervene to restore the equilibrium price and quantity?
What will be an ideal response?
The economic point of view assumes central bankers, bureaucrats, elected politicians, and tax collectors
A) are immoral. B) act selfishly. C) respond to incentives. D) act in the national interest.
Which statement CORRRECTLY describes "structural unemployment"?
A) Structural unemployment occurs mainly during recessions. B) Structural unemployment is also called "frictional unemployment." C) Structural unemployment occurs even when the economy is at the natural unemployment rate. D) The amount of structural unemployment depends on normal labor turnover.
If a good is produced using inputs for which there are no substitutes, the good's
A) elasticity of supply is likely to be small. B) elasticity of supply is likely to be large. C) elasticity of demand will be small. D) elasticity of demand will be large.