The Sweezy model of oligopoly reveals that:
A. perfectly competitive prices can arise in markets with only a few firms.
B. capacity constraints are not important in determining market performance.
C. changes in marginal cost may not affect prices.
D. All of the statements associated with this question are correct.
Answer: C
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The Conservation Reserve Program pays farmers to take land out of production. The primary focus of the program is on
A) improving rural landscapes by creating more forested land. B) reducing erosion. C) improving habitat for endangered species. D) maintaining water quality.
Measurement of economic values after adjustments have been made for changes in the average of prices between years in known as
A. a deflator. B. real values. C. nominal values. D. the price index.