Answer the following statement(s) true (T) or false (F)
1. When a monopoly supplier acquires a monopoly manufacturer, the vertical merger intensifies the supplier's use of monopoly power over the manufacturer.
2. A buy-out is more likely to delay a rival's reemergence than is predatory pricing.
3. Economic analysis suggests that resale price maintenance is primarily used by manufacturers to keep prices artificially high.
4. A firm has the incentive to cheat on a cartel agreement only when it fears that other cartel members will also cheat.
5. The Prisoners' Dilemma game is another situation where the Invisible Hand Theorem is true.
1. False
2. True
3. False
4. False
5. False
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In South Asia and Sub-Saharan Africa, about what share of output is contributed by agriculture?
(a) One tenth. (b) One fifth. (c) Two fifths. (d) One half.
According to the liquidity premium theory, if market participants expect that inflation in the future will be lower than it currently is, the yield curve will
A) slope upward. B) be flat. C) be inverted. D) be vertical.