-In the Above Figure, Suppose the Economy Had Been at Point

question 257

Multiple Choice

-In the above figure, suppose the economy had been at point A and now is at B. What could have led to the movement to B?

• A) a tax increase
• B) an increase in government expenditures on goods and services
• C) Winter storms caused factories in the north to be shut down for several weeks.
• D) an increase in the money wage rates

Understand the defining characteristics of oligopolies and their economic implications.

Recognize the concepts of game theory and how it applies to oligopolistic competition.

Comprehend the role and effects of cartels, such as OPEC, in the global market.

Identify strategies and behaviors unique to oligopolistic firms, including collusion and price leadership.

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Definitions:

Attitude-Behavior Consistency

The extent to which individuals’ attitudes (beliefs and feelings) about an object predict their behavior towards that object.

Cognitive Dissonance

The mental discomfort experienced by a person who holds two or more contradictory beliefs, ideas, or values at the same time.

Theory of Planned Behavior

A theory that predicts an individual's intention to engage in a behavior at a specific time and place, considering the attitude toward the behavior, subjective norms, and perceived behavioral control.

Subjective Norms

Individual beliefs about what significant people in their life think they should do, influencing their intentions and behaviors.