If the two goods in an Edgeworth Box are perfect complements for both people, all efficient allocations will have each person getting the same amount of good 1 as of good 2.
Answer the following statement true (T) or false (F)
False
Rationale: This is true only if the Edgeworth Box is a square.
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The CPI in year one equaled 1.45. The CPI in year two equaled 1.51. The rate of inflation between years one and two was ________ percent.
A. 6.0 B. 4.0 C. 4.1 D. 4.5
In game theory, if two rivals in an oligopoly can avoid a large loss by cutting price from $40 to $35,
a. neither will cut its price b. one will charge $40 and the other will charge $35 c. their actions will depend on their respective strategies d. each will cut price but not all the way to $35 e. they will collude to do what's best for both of them
Deadweight losses are the only potential cost associated with tariffs, which is why they are preferred to quotas
Indicate whether the statement is true or false
Assuming no externalities exist, if a good's price is more than its marginal cost, then the benefits consumers derive are ________ than the cost of resources needed to produce it and ________ should be produced.
A. greater; more B. less; more C. less; less D. greater; less