If an incumbent faces an identical potential entrant with no costs of entry, the incumbent will
A) produce the Cournot duopolist level of output.
B) produce the Stackelberg leader level of output.
C) set price equal to marginal cost.
D) shut down.
B
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The income elasticity of demand for used cars is less than zero, so used cars are
A) an inferior good. B) a normal good. C) an inelastic good. D) a perfectly inelastic good. E) a substitute good.
Which of the following countries is not a member of NAFTA?
A) Canada. B) The United States of America. C) Mexico. D) All three countries form part of NAFTA.
Which of the following has been shown to improve the likelihood of accumulating wealth?
a. Earning a college degree b. Investing in bonds and stocks c. Getting married later in life d. Putting money in a checking account
The balance of payments constraint refers to the limits on:
A. exchange rate policy imposed by flexible exchange rates. B. currency convertibility observed in most developing countries. C. domestic macroeconomic policy, arising from a shortage of international reserves. D. macroeconomic policy resulting from IMF conditionality.