An increase in the cost of lumbering activities will:
a. increase the quantity of wood supplied to the furniture market.
b. decrease the quantity of wood supplied to the furniture market.
c. decrease the supply of wood to the furniture market.
d. increase the supply of wood to the furniture market.
C
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Prices do not necessarily tend toward equilibrium and are subject to fits of change when a market is
a. a natural monopoly b. an unbalanced oligopoly c. monopolistically competitive d. in a long-run situation e. an oligopoly using game theory strategies
Consider two goods--one that generates external benefits and another that generates external costs. A competitive market economy would tend to produce
a. too much of both goods. b. too little of both goods. c. too much of the good that generates external benefits and too little of the good that generates external costs. d. too little of the good that generates external benefits and too much of the good that generates external costs.
Suppose the central bank implements a monetary expansion in the current period and is expected to continue this monetary expansion in the future. Use the IS-LM model to illustrate graphically and explain the effects of this policy on current output and the current interest rate
What will be an ideal response?
An association of producers in an industry that agree to set common prices and output quotas to prevent competition is
A. a cartel. B. a monopolistic competitor. C. a constrained monopoly. D. an oligopolist.