Most Americans believe that families really could get by on the government’s definition of minimum needs if they tried hard. Indicate whether the statement is true or false ANSWER F
Date: September 9th, 2020
In the short run, a perfectly competitive firm earning negative economic profit A) is on the downward-sloping portion of its AVC. B) is at the minimum of its AVC. C) is on the upward-sloping portion of its AVC. D) is not operating on its AVC. E) can be at any point on its AVC. […]
Date: September 9th, 2020
See Scenario 4.5. If P = $1,000, the price elasticity of demand: A) is 0, B) is negative infinity. C) is -0.18. D) cannot be determined without knowing I and Ph. ANSWER C
Date: September 9th, 2020
The poor, in considering a job offer, face constraints that middle-class job seekers are not subject to. Indicate whether the statement is true or false ANSWER T
Date: September 9th, 2020
The game in Scenario 13.10 is A) variable-sum. B) constant-sum. C) cooperative. D) a Prisoners’ Dilemma. E) a Cournot Production Cross. ANSWER B
Date: September 9th, 2020
A “mixed strategy” equilibrium means that A) the strategies chosen by the players represent different behaviors. B) one player has a dominant strategy, and one does not. C) one player has a pure strategy, and one does not. D) the equilibrium strategy is an assignment of probabilities to pure strategies. E) the equilibrium strategy involves […]
Date: September 9th, 2020
You have won a contest and are allowed to choose between two prizes. One prize is $200 today and another $200 one year from now. The other prize is $100 today and an additional $325 one year from now. At what interest rate (if any) would you be indifferent between the two prizes? ANSWER […]
Date: September 9th, 2020
Two bonds of equal risk are for sale on the secondary bond market. The two bonds have the same face value, and both mature in 10 years. Bond A pays $10 per year and bond B pay $15 per year. Which bond will sell for a higher price? A) Bond A B) Bond B C) […]
Date: September 9th, 2020
Which of the following is TRUE about producers’ willingness to offer warranties on products? A) Producers are equally likely to offer warranties on high-quality and low-quality goods. B) Producers are more likely to offer warranties on low-quality goods, because without the signal that the warranty provides, the low-quality good wouldn’t sell. C) Producers are more […]
Date: September 9th, 2020
Laser disc players have been around for 10 years, but in the last several years, the sales have skyrocketed. Manufacturers attribute the increase in sales to lower prices, increased availability of movies on laser disk, and the appearance of laser disks for rent in video cassette rental stores. Describe this market using the concept of […]
Date: September 9th, 2020
