The total of producer and consumer surplus is maximized when there is underproduction.
Answer the following statement true (T) or false (F)
False
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A game where it only matters that the players work together to agree on an outcome, not which outcome they agree upon, is called
A) a pure coordination game. B) a prisoner's dilemma game. C) an assurance game. D) a battle of the sexes game.
A move from G to H represents
A. an increase in quantity supplied.
B. a decrease in quantity supplied.
C. an increase in supply.
D. a decrease in supply.
Which of the following statements is true?
A) If the opportunity costs differ between two countries, there is no opportunity for mutually advantageous trade. B) International trade leads countries to specialize in the production of those goods for which they have an absolute, rather than a comparative, advantage. C) Free international trade can increase the availability of all goods and services in the countries that participate in trade. D) The potential costs of free trade generally outweigh the benefits.
The theory of monopolistic competition was developed in two separate models by
A) Adam Smith and David Ricardo. B) John Kenneth Galbraith and John Maynard Keynes. C) Edward Chamberlin and Joan Robinson. D) Roger Leroy Miller and Paul Samuelson.