Consider the accompanying payoff matrix.
If Row Resorts keeps its rates high, then Column Cruises would receive the highest payoff if it:
A. kept its rates high.
B. choose either strategy because it will have the same payoff in either case.
C. offered reduced rates.
D. agreed with Row Resorts to reduce their rates at exactly the same time.
Answer: C
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Excessive creation of new money to finance a government budget deficit can lead to
A) stagflation. B) disinflation. C) hyperinflation. D) deflation.
A leading game-console manufacturer slashes the price of its flagship product by ten percent. Holding other things such as income and preferences constant, which of the following is the most likely group behavior prediction? a. Price reduction will have no impact on purchase patterns
b. Price reduction will be associated with a reduction in quality; thereby reducing sales. c. More game consoles will be sold at lower prices. d. Group behavior cannot be predicted.
Indifference curve analysis:
A. presumes, as does utility analysis, that satisfaction is numerically measurable. B. presumes, unlike utility analysis, that satisfaction is numerically measurable. C. presumes only that the consumer can say one combination of two goods yields more or less utility than some other combination. D. is in conflict with the idea of a downsloping demand curve.
According to Darity and Myers
A. black men are becoming increasingly marginal to our economy. B. the basic cause of poverty is welfare dependency. C. the best solution to poverty is the negative income tax. D. as our economy continues to expand, black poverty will decline.