Economics is the study of the allocation of scarce resources and scarce time, and the ways in which ...

Economics is the study of the allocation of scarce resources and scarce time, and the ways in which people utilize those resources or that time.
 a. True
  b. False
  Indicate whether the statement is true or false

QUESTION 2

Which of the following statements about collusion is true?
 a. Collusion is legal in the United States.
  b. Its overriding goal is to enhance competition and thereby increase profits.
  c. The greater the number of firms, the less difficult it is to maintain a collusion.
  d. Collusion never results in benefits for the participants.
  e. Collusion may help to increase the profits of the participating firms.

QUESTION 3

Scarcity is a result of an unfair distribution of income.
 a. True
  b. False
  Indicate whether the statement is true or false

QUESTION 4

The firms in an oligopoly market structure agree to collude because:
 a. it helps them to earn more profits.
  b. each firm wants to know the strategy of its rivals.
  c. each firm wants to charge a lower price for its product than its rivals.
  d. the firms want to maintain a healthy relationship with each other.
  e. it helps them to enjoy economies of scale.

QUESTION 5

A limitation one faces when shopping for clothes is the amount of time available to shop.
 a. True
  b. False
  Indicate whether the statement is true or false

QUESTION 6

A Nash equilibrium occurs when:
 a. a unilateral move by a participant makes him better off.
  b. one can deviate from the equilibrium and improve the outcome.
  c. no one can move from the equilibrium and improve the outcome.
  d. participants have an incentive to deviate from the equilibrium.
  e. no one is better off.