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80. Firms in an industry that informally agree to charge the same price as the largest firm are an example of ______. (Points: 3)
price extortion
overt collusion
****tacit collusion

81. A dominant strategy equilibrium exists in a game when ______. (Points: 3)
every player has no choice
****every player makes the same choice, regardless of the action of the other players
each player makes the best choice, given the choice of the other player
no player is able to dictate the actions of any other player

82. When one firm responds to a rival's cheating by cheating and to a rival's cooperation by cooperating, that firm is practicing a ______. (Points: 3)
dormant strategy
trigger strategy
conclusive strategy
****tit-for-tat strategy

83. An industry characterized by many firms, producing similar but differentiated products, in a market with easy entry and exit is called ______. (Points: 3)
perfect competition
****monopolistic competition

84. In large shopping areas, the retail market is most illustrative of ______. (Points: 3)
*****monopolistic competition
perfect competition
perfect oligopoly

87. If a firm under monopolistic competition is producing a quantity that generates MC = MR, then the marginal decision rule tells us that profit ______. (Points: 3)
****is maximized
can be increased by decreasing production
can be increased by decreasing the price
is maximized only if MC = P

88. In the long run, monopolistically competitive firms tend to experience ______. (Points: 3)
high economic profits
****zero economic profits
negative economic profits
substantial economic losses

89. Defenders of advertising argue that it _______. (Points: 3)
seeks to persuade, rather than inform, buyers
****provides education and information about products
facilitates the concentration of monopoly power
encourages artificial product differentiation

90. If external costs exist, the competitive free market ______. (Points: 3)
****allocates resources inefficiently
allocates resources efficiently
automatically corrects an overallocation of resources
automatically corrects an underallocation of resources

91. According to the Coase theorem, when negative externalities are present, a market will ______. (Points: 3)
always reach an efficient solution
*****reach an efficient solution if transaction costs are low
reach an efficient solution only if the government intervenes in the market
reach an efficient solution only if the negative externalities are offset by positive externalities

92. Taxes are a more effective method of controlling pollution than environmental standards because _____. (Points: 3)
standards allow greater flexibility
standards require less information
standards never require the efficient level of output
taxes encourage reducing pollution at minimum cost

93. The licenses that enable the holder to pollute up to a specified amount during a given time period that can be bought and sold by polluters are called ______. (Points: 3)
emissions taxes
Pigouvian taxes
tradable emission permits
*****environmental standards

94. A tax system _______ when the “right people actually bear the burden of taxes.” (Points: 3)
is efficient
****is equitable
has no deadweight loss
is both A and B

95. Criteria that economists use in selecting a tax system include ______. (Points: 3)
****ability to pay and benefits received
only benefits received
only ability to pay

96. Paying a fee every time you use the municipal golf course is an example of the ______. (Points: 3)
benefits principle
ability-to-pay principle
progressive tax principle
regressive tax principle

97. A tax that takes a fixed percentage of income, regardless of the level of income, is a(n) ______. (Points: 3)
****proportional tax
benefits tax
progressive tax
regressive tax

98. The rate that would apply to an additional $1 of taxable income received by a taxpayer is the ______. (Points: 3)
****marginal tax rate
average tax rate
total tax rate
lower tax rate

99. If the marginal tax rate is less than the average tax rate, we know that the tax system is ______. (Points: 3)

100. The single most important factor influencing children's later socioeconomic attainment is ______. (Points: 3)
parental income
****health care
geographic mobility

  • MicroEconomics -

    Please let me know if i have answered these right and what your thoughts are. ANY help is appricated!! thank you

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