If there are only two airlines that fly between Dallas and New Orleans, what will happen in the market for one airline if the other one goes out of business?
A. The demand curve will shift to the left.
B. The demand curve will shift to the right.
C. There will be a movement to the right along the initial demand curve.
D. There will be a movement to the left along the initial demand curve.
Answer: B
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Which of the following most accurately describes what the text says about mercantilists?
a. They tried to build up the military power of their economies. b. They tried to produce full employment. c. They confused gold and silver with true wealth. d. They were merely spokesmen for special interest groups.
Economists believe that people are:
A. generally risk-seekers. B. generally risk-averse. C. always risk-averse. D. always risk-seekers.
According to new Keynesian economics:
a. the aggregate supply curve is horizontal at relatively low levels of real GDP and becomes negatively sloped, as more and more industries reach their full capacity level of output. b. the aggregate supply curve is negatively sloped at relatively low levels of real GDP and becomes horizontal, as more and more industries reach their full capacity level of output. c. the aggregate supply curve is horizontal at relatively low levels of real GDP and becomes positively sloped, as more and more industries reach their full capacity level of output. d. the aggregate supply curve is positively sloped at relatively low levels of real GDP and becomes horizontal, as more and more industries reach their full capacity level of output. e. the aggregate supply curve is positively sloped at relatively low levels of real GDP and becomes negatively sloped, as more and more industries reach their full capacity level of output.
Game theory is
A. The study of decision making in situations where strategic interaction occurs between rivals. B. Practiced by perfectly competitive firms. C. The study of price-fixing and collusion. D. An explanation of how oligopolists become monopolists.