A change in income leads to a ________ that causes a ________.
A. change in quantity demanded; shift of the demand curve
B. change in quantity demanded; movement along the demand curve
C. change in demand; movement along the demand curve
D. change in demand; shift of the demand curve
Answer: D
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Which of the following economic systems requires some form of competition to better coordinate the plans and projects of households and enterprises?
A) capitalism. B) socialism. C) fascism. D) totalitarianism E) all of the above.
In many business situations one firm will act first, and then other firms will respond. To help analyze these types of situations economists use
A) follow-the-leader-games. B) sequential games. C) retaliation games. D) bargaining games.
Assume declining profits in the market for Internet service force several firms in the area to drop out of the market. All else constant, this would cause the:
A) equilibrium price and quantity to decrease. B) equilibrium price and quantity to increase. C) equilibrium price to increase and equilibrium quantity to decrease. D) equilibrium price to decrease and equilibrium quantity to increase.
"By producing at an output rate at which marginal revenue equals marginal cost, a firm is definitely making positive economic profits." Do you agree or disagree? Why?
What will be an ideal response?