Question 1

An association of producers in an industry that agree to set common prices and output quotas to prevent competition is

Accepted Answer

A)  an oligopolist. 
B)  a monopolistic competitor. 
C)  a constrained monopoly. 
D)  a cartel. 
A)  an oligopolist. 
B)  a monopolistic competitor. 
C)  a constrained monopoly. 
D)  a cartel.

Question 2

Oligopolistic industries are characterized by a

Accepted Answer

A)  few large firms and no barriers to entry. 
B)  large number of firms and no barriers to entry. 
C)  few large firms and substantial barriers to entry. 
D)  large number of firms and substantial barriers to entry. 
A)  few large firms and no barriers to entry. 
B)  large number of firms and no barriers to entry. 
C)  few large firms and substantial barriers to entry. 
D)  large number of firms and substantial barriers to entry.

Question 3

Explain the basic operations of an economic game.

Accepted Answer

Games can be either cooperative, in whic

Question 4

In which market structure does a firm have the LEAST influence over the market price?

Accepted Answer

A)  monopoly 
B)  monopolistic competition 
C)  oligopoly 
D)  perfect competition 
A)  monopoly 
B)  monopolistic competition 
C)  oligopoly 
D)  perfect competition

Question 5

The dominant strategy in the prisoners' dilemma is for

Accepted Answer

A)  neither player to confess. 
B)  both players to confess. 
C)  only the dominant player to confess. 
D)  the dominant player not to confess. 
A)  neither player to confess. 
B)  both players to confess. 
C)  only the dominant player to confess. 
D)  the dominant player not to confess.

Question 6

A cartel is

Accepted Answer

A)  a group of producers that agree to set common prices and output quotas. 
B)  a group of consumers that bid against each other for the same product. 
C)  a government agency that regulates markets. 
D)  an arbitrator to settle disputes between consumers and producers. 
A)  a group of producers that agree to set common prices and output quotas. 
B)  a group of consumers that bid against each other for the same product. 
C)  a government agency that regulates markets. 
D)  an arbitrator to settle disputes between consumers and producers.

Question 7

For Industry A, its 1-firm, 2-firm, 4-firm and 8-firm concentration ratios are the same. Based on this, we can conclude that Industry A is

Accepted Answer

A)  pure competition. 
B)  monopolistic competition. 
C)  oligopoly. 
D)  pure monopoly. 
A)  pure competition. 
B)  monopolistic competition. 
C)  oligopoly. 
D)  pure monopoly.

Question 8

A market with many sellers, some influence over price, low barriers to entry, a differentiated product, and non-price competition often taking the form of advertising is known as

Accepted Answer

A)  perfect competition. 
B)  monopolistic competition. 
C)  oligopoly. 
D)  monopoly. 
A)  perfect competition. 
B)  monopolistic competition. 
C)  oligopoly. 
D)  monopoly.

Exam 26: Oligopoly and Strategic Behavior

An association of producers in an industry that agree to set common prices and output quotas to prevent competition is

Oligopolistic industries are characterized by a

Explain the basic operations of an economic game.

In which market structure does a firm have the LEAST influence over the market price?

The dominant strategy in the prisoners' dilemma is for

A cartel is

For Industry A, its 1-firm, 2-firm, 4-firm and 8-firm concentration ratios are the same. Based on this, we can conclude that Industry A is

A market with many sellers, some influence over price, low barriers to entry, a differentiated product, and non-price competition often taking the form of advertising is known as

The Nature of Economics

Scarcity and the World of Trade-Offs

Demand and Supply

Extensions of Demand and Supply Analysis

Public Spending and Public Choice

Funding the Public Sector

The Macroeconomy: Unemployment, Inflation, and Deflation

Measuring the Economys Performance

Global Economic Growth and Development

Real GDP and the Price Level in the Long Run

Classical and Keynesian Macro Analyses

Consumption, Real GDP, and the Multiplier

Fiscal Policy

Deficit Spending and the Public Debt

Money, Banking, and Central Banking

Domestic and International Dimensions of Monetary Policy

Stabilization in an Integrated World Economy

Policies and Prospects for Global Economic Growth

Demand and Supply Elasticity

Consumer Choice

Rents, Profits, and the Financial Environment of Business

The Firm: Cost and Output Determination

Perfect Competition

Monopoly

Monopolistic Competition

Regulation and Antitrust Policy in a Globalized Economy

The Labor Market: Demand, Supply and Outsourcing

Unions and Labor Market Monopoly Power

Income, Poverty, and Health Care

Environmental Economics

Comparative Advantage and the Open Economy

Exchange Rates and the Balance of Payments

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