All of the following are types of decisions that can be made at the margin EXCEPT:
a) whether to grow beans or corn on a large farm
b) whether or not to hire 100 new workers
c) whether to leave early in the morning or late in the day for a trip
d) whether or not to go on a vacation
Ans: d) whether or not to go on a vacation
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Which of the following will cause an increase market supply?
A. An increase in the price of the good. B. An increase in demand for the good. C. A technological innovation that lowers the marginal cost of producing the good. D. A decrease in the number of firms in the market.
Why is the prisoner's dilemma game useful in studying oligopoly behavior?
A) Because oligopolies make out like bandits. B) To illustrate the problems encountered when making decisions under uncertainty. C) To show that oligopolies behave as monopolists in the long run and earn positive economic profits. D) To illustrate how barriers to entry lead to economic profits.
If inflation had long been 4% and was therefore expected to continue, then it unexpectedly increased to 7% inflation: a. the real interest rate on loans issued just before the change occurred would decrease by three percentage points. b. the real interest rate on loans issued just before the change occurred would increase by three percentage points. c. the real interest rate on loans issued
just before the change occurred would not change. d. none of the above.
A credit in the U.S. balance of payments occurs when
a. U.S. companies sell merchandise abroad. b. foreign companies sell merchandise to U.S. consumers. c. U.S. consumers send money to foreign companies. d. immigrants to the United States send presents of money back to their families in their native countries.