Hermitage,a Famous Russian Art Museum,was Suffering Financial Difficulties as the Result

question 205

Multiple Choice

Hermitage,a famous Russian art museum,was suffering financial difficulties as the result of lost funding and a decrease in tourists.The decrease in visitors is blamed on a lack of awareness of the treasures contained in the museum.As a result,the Hermitage's director used a strategic alliance with IBM to create a website where people can go and view some of the wonders of the Hermitage in an online virtual tour.The hope is that this sampling of paintings,sculptures,etc.will encourage visitors to make a trip to the Hermitage and spend some money there to cover the costs of its operations.The Hermitage is a(n) __________ that uses online virtual tours to market itself worldwide.

• A) good
• B) idea
• C) service
• D) product
• E) charity

Evaluate the role of government intervention in correcting market failures caused by monopolies and oligopolies.

Assess the strategic behavior of firms within oligopolies, including price-fixing and collusion.

Differentiate between short-run and long-run outcomes in monopolistic markets.

Apply economic concepts to interpret graphical representations of market conditions in monopolistic and oligopolistic markets.

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Definitions:

Money Supply

The entire amount of financial assets existing in an economy at a certain time.

Inflation

A widespread inflation of prices leading to a diminished ability to purchase with money.

Short-run Phillips Curve

A graphical representation showing an inverse relationship between the rate of inflation and the rate of unemployment in an economy over the short term.

Inflation

The rate at which the wholesale price levels for goods and services ascend, diminishing economic purchasing strength.