In deciding which model of a car to buy, microeconomic theory maintains that consumers are concerned about the absolute price of a particular car, rather than its relative price. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
In order for the first player to move in a sequential game to be able to gain an advantage from making the first move, the player must: A) possess a dominant strategy that is better than the other player’s dominant strategy. B) be able to achieve a higher maximum payoff than the other player. C) […]
Date: September 10th, 2020
Macroeconomics is concerned with the behavior of all of the firms in a particular industry, while microeconomics focuses on a single firm in the same industry. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
Many unions attempt to raise the hourly wages received by their members by restricting the supply of workers firms can hire from. Assuming the demand for workers who belong to these unions is inelastic, this would cause: A) wages of individual union members to decrease and the total (combined) income of union members to increase. […]
Date: September 10th, 2020
Suppose an oligopoly consists of two firms. Firm A lowers price and Firm B responds by lowering its price by the same amount. If average costs and industry output remain the same, which of the following will occur? A) The profits of the two firms will increase. B) The profits of the two firms will […]
Date: September 10th, 2020
The dominant strategy for each of the players in the prisoner’s dilemma game does not yield the optimal outcome for each player because: A) each player is misinformed about the decision that has been made by the other player. B) the players do not understand the consequences of each of the choices they can make. […]
Date: September 10th, 2020
In the long run, the price elasticity of demand is ________ than in the short run because ________. A) less; consumers have more time in which to make adjustments to price changes B) less; the percentage change is measured over a larger amount of time C) greater; consumers have more time in which to make […]
Date: September 10th, 2020
Understanding how individual sectors of the economy will respond to changes in key economic variables gives us a better understanding of how the macroeconomy behaves. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
In which of the following examples cited in the text is there the least amount of evidence of the potential for input substitution? A) Automobile production. B) Pipe organ production. C) French fry production. D) Production of health care services. ANSWER B
Date: September 10th, 2020
The following question is an example of microeconomic analysis, “What determines the price of gasoline in a particular city or town?” Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
