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
In an open economy, injections and leakages are related as: A) I + G = S + T. B) I + G + X = S + T + M. C) X + G = T + M. D) none of the above ANSWER B
Date: September 10th, 2020
Consumer debt 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 B
Date: September 10th, 2020
The decision by the federal government to prohibit cigarette companies from advertising on television actually caused the companies’ profits to increase, an outcome that is consistent with the prediction of the prisoner’s dilemma game. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
Which of the following is not considered a factor that influences supply? A) Technology. B) Production taxes and subsidies. C) The number of buyers. D) Resource prices. ANSWER C
Date: September 10th, 2020
According to the kinked demand curve model, regardless of whether a firm increases or decreases price, its total revenues will decrease as a result of the price change. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
Assuming the demand curve in question is downward sloping, the calculated price elasticity of demand will always be negative. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
All else constant, all of the following would cause the demand curve for a good to shift except: A) a change in the cost of producing the good. B) a change in the price of a related good. C) a change in consumer’s incomes. D) a change in the number of buyers. ANSWER A
Date: September 10th, 2020
