If an incumbent faces an identical potential entrant with no costs of entry, the incumbent will A) produce the Cournot duopolist level of output. B) produce the Stackelberg leader level of output. C) set price equal to marginal cost. D) shut down. ANSWER B
Date: September 9th, 2020
A downtown diner daily serving the same business people will be more likely to serve a tasty lunch than a snack bar at a tourist attraction. What will be an ideal response? ANSWER True. The diner will benefit from a good reputation with consumers. The business people will repeatedly visit a good diner. The […]
Date: September 9th, 2020
Searching the internet for information to help select a product that is more reliable is most likely to be done by a A) risk-averse person. B) risk-neutral person. C) risk-preferring person. D) This cannot be determined with the information provided. ANSWER A
Date: September 9th, 2020
Special interests have an incentive to become informed about a policy from which they could receive concentrated benefits. Since other voters remain rationally ignorant of the policy, the special interests will have considerable influence in the legislature. Will special interests receive everything they want from the legislature? Why or why not? How will the legislature […]
Date: September 9th, 2020
What percentage of the U.S. population was subjected to the 1913 income tax? a. 1 percent b. 5 percent c. 10 percent d. 15 percent ANSWER a
Date: September 9th, 2020
Explain why procurement is such a problematic area for the military. What issues somewhat unique to the military make it necessary to utilize a variety of different procurement contract in order to attempt to get the correct output delivered at the lowest possible price? List four general types of procurement contracts. ANSWER If all […]
Date: September 9th, 2020
If a Cournot duopolist announced that it will double its output, the other firm does not view the announcement as credible because A) the announcing firm’s profits will fall if it carries out the threat. B) the other firm’s profits will fall if the announcing firm carries out the threat. C) the other firm’s profits […]
Date: September 9th, 2020
Adverse selection occurs when an agreement encourages undesirable behavior. Indicate whether the statement is true or false ANSWER False. This is a moral hazard. Adverse selection occurs if the offer to make an agreement attracts a certain type person who undertakes the undesirable behavior anyway.
Date: September 9th, 2020
A change in a relevant factor other than the price of the good itself causes a ________ the demand curve, and a change in a good’s own price causes a ________ the demand curve. A) shift of; shift of B) shift of; movement along C) movement along; shift of D) movement along; movement along […]
Date: September 9th, 2020
The problems posed by special interests are unaffected by fiscal federalism. a. True b. False ANSWER b
Date: September 9th, 2020
