Barometric price leadership can occur when oligopolistic firms A) compete on the basis of differentiated products. B) want to avoid price competition and violating antitrust laws. C) try to enforce cartel agreements. D) All of the above ANSWER B
Date: September 9th, 2020
A dummy variable is also called A) an approximate variable. B) a discrete variable. C) a zero-sum variable. D) an improper variable. ANSWER B
Date: September 9th, 2020
An individual who works for 49 quarters in a covered job is eligible for Social Security benefits. a. True b. False ANSWER a
Date: September 9th, 2020
In an ultimatum game where the payoff totals $100 and is split in $1 increments, the rational amount for the proposer to offer and the responder to take is A) $0. B) $1. C) $50. D) $100. ANSWER B
Date: September 9th, 2020
To dig a trench, each worker needs a shovel. Workers can only use one shovel at a time. Workers without shovels do nothing, and shovels cannot operate on their own. What kind of production technology is this? Graphically (with isocost and isoquant lines) determine the optimal number of shovels and workers used by a firm […]
Date: September 9th, 2020
A paper company dumps nondegradable waste into a river that flows by the firm’s plant. The firm estimates its production function to be: Q = 6KP, where Q = annual paper production measured in pounds, K = machine hours of capital, and P = gallons of polluted water dumped into the river per year. The […]
Date: September 9th, 2020
The position of a cartel will become weaker if there is ________ excess-capacity among the firms belonging to the cartel. A) minimum B) no C) zero D) high ANSWER D
Date: September 9th, 2020
In an apolitical world with a constant tax rate and program characteristics, the rate of return on Social Security contributions is equal to the growth in national income. a. True b. False ANSWER a
Date: September 9th, 2020
In which of the following market structures with two identical firms do both firms produce more than the Cournot outcome? A) Stackelberg Oligopoly B) Cartel C) Perfect Competition D) None of the above ANSWER C
Date: September 9th, 2020
A backward-bending labor supply curve could possibly imply which of the following cases? A) Leisure is an inferior good. B) Leisure is a normal good. C) Leisure is a normal good at low wages and inferior at high wages. D) None of the above. ANSWER B
Date: September 9th, 2020
