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
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
Assume a firm produces 500 units of a good by using two inputs, capital and labor, whose per unit prices are $10 and $4. Assume also that the marginal physical product of the last unit of capital is 30 and the marginal physical product of the last unit of labor is 10. Is this firm […]
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
