In the market for cell phones, all of the following would cause the supply of cell phones to change except: A) an improvement in the technology used to produce cell phones. B) an increase in the cost of labor used to produce cell phones. C) a change in cell phone producers’ expectations. D) an increase […]
Date: September 10th, 2020
The ability to make a credible commitment is necessary for the first mover to gain an advantage in a sequential game. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
Capacity utilization increases. What is the impact on aggregate expenditures and income? A) Both increase. B) Both decrease. C) Aggregate expenditure increases and income decreases. D) Aggregate expenditure decreases and income increases. ANSWER A
Date: September 10th, 2020
Assuming capital and labor are substitutes, an improvement in technology that affects only the productivity of capital would cause a firm to employ more capital but leave the amount of labor employed unchanged. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
Which of the following would not cause the supply curve for gasoline to shift? A) A change in the wages paid to gas station attendants. B) A change in the number of gas stations. C) A change in the incomes of drivers. D) A change in the cost of refining oil. ANSWER C
Date: September 10th, 2020
Assume that the U.S. dollar depreciates against the Japanese yen. What is the impact on aggregate expenditures and income? A) Both increase. B) Both decrease. C) Aggregate expenditure increases and income decreases. D) Aggregate expenditure decreases and income increases. ANSWER A
Date: September 10th, 2020
Assume a firm has decided to undertake a limit pricing strategy. For the strategy to be successful, the firm does not need to actually possess a cost advantage over potential entrants. Rather, the firm simply has to be able to convince potential entrants that it does, in fact, possess an advantage. Indicate whether the statement […]
Date: September 10th, 2020
Studies and recent experience suggest that there is considerable potential for substitution between doctors and nurses in the production of health care services. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
In the prisoner’s dilemma game, each player’s dominant strategy leaves her with a larger payoff than she could receive by cooperating with the other player; however, the “prisoner’s dilemma” is that as a result of noncooperation she cannot chose dominant strategy. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
A change in technology or the relative prices of the inputs used in a production process would cause a manager’s choice of inputs to use in the production process to change as well. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
