Many People Consider Themselves to Be Middle Class, but the Book

question 14

Multiple Choice

Many people consider themselves to be middle class, but the book defines the middle class by the following criteria:

• A) a family of four that makes between $35,000 and $100,000 per year
• B) an individual who makes between $50,000 and $100,000 per year
• C) a family of four that has two working parents and owns a home
• D) an individual who is employed and owns assets worth $50,000 to $100,000

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Definitions:

Dominant Strategy

A strategy that is best for a player in a game regardless of the strategies chosen by the other players.

Sherman Antitrust Act

A landmark 1890 U.S. legislation aimed at prohibiting monopolies and other practices that restrained competition and trade.

Fixing Prices

The practice of setting the price of a product or service, rather than allowing it to be determined naturally through free-market forces.

Oligopoly Outcome

In markets dominated by a small number of firms (an oligopoly), the outcome often includes non-price competition, strategic interactions, and potentially higher prices and lower outputs than in competitive markets.