Suppose that a community seeks to preserve air quality, and zones a "green belt" around the city which prevents property development within the belt. What is the most likely result of this law?
a. Interest rates will increase.
b. Labor income will increase.
c. Economic rent will increase.
d. Profits will increase.
c
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Entry and exit drive each firm in a monopolistically competitive market to a point of tangency between its
a. marginal revenue curve and its total cost curve. b. marginal revenue curve and its average total cost curve. c. demand curve and its total cost curve. d. demand curve and its average total cost curve.
Economic theory predicts a close relationship between productivity and real wages. Does history confirm this relationship?
Exhibit 12-1 Business cycle
?
In Exhibit 12-1, the recession phase of the business cycle can be represented by point(s):
A. CDE. B. BCD. C. EFG. D. A and E.
Which of the following is a difference between a pure strategy and a mixed strategy?
A. When a player assigns a probability to an action, it is a pure strategy, while in a mixed strategy players choose their actions sequentially. B. A pure strategy has an element of surprise, while a mixed strategy can be easily predicted by rivals. C. A pure strategy involves all players making their moves simultaneously, while a mixed strategy minimizes the losses of players. D. When a player chooses a specific action in a game, it is a pure strategy, while in a mixed strategy players randomize.