The fact that a firm is using a capital-intensive method of production means that input substitution is not possible. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
“Supply” is best defined as the relationship between: A) the current price of a good and the quantity supplied at that price. B) the price of a good or service and the quantity supplied by producers at each price during a period of time. C) the cost of producing a good and the price consumers […]
Date: September 10th, 2020
In the prisoner’s dilemma game, each player’s dominant strategy is also the Nash equilibrium. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
If desired spending is less than output, then firms: A) accumulate their inventories and cut production. B) deplete their inventories and cut production. C) deplete their inventories and increase production. D) accumulate their inventories and increase production. ANSWER A
Date: September 10th, 2020
A firm is more likely to use a labor-intensive method of production when the relative amount of available labor is greater than the available amount of capital. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
Assume that when the price of good X is $7, quantity demanded is 25. When price is increased to $9, quantity demanded falls to 20. Based on this information, over the range in question demand is elastic. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
In game theory, a Nash equilibrium is the set of strategies each of the players chooses by selecting the strategy that maximizes her payoff independent of what the other players might choose. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
Within the Keynesian cross, the adjustment towards equilibrium occurs through: A) inflation. B) inventories. C) interest rates. D) none of the above. ANSWER B
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
