In the figure above, if the wage rate is $6 per hour, then the
A) firms' surplus is the area d + e + f.
B) workers' surplus is the area a + b + c.
C) deadweight loss equals zero.
D) Only answers A and C are correct.
E) Answers A, B, and C are correct.
E
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The MP Curve ________
A) demonstrates how central banks respond to changes in inflation with changes in the interest rate B) shows how changes in interest rates affect equilibrium output C) explains short run fluctuations in output and inflation D) all of the above E) none of the above
If the Prisoners' Dilemma is repeated over and over again with the same two players having an indefinite time horizon,
a. the unique equilibrium is to play the Nash equilibrium of Rat each period. b. players can cooperate on Silent if they are not too patient. c. players can cooperate on Silent if they are patient enough. d. players can only cooperate on Silent in the initial stages of the game.
A curve that is derived by summing horizontally individual supply curves is called:
a. aggregate demand. b. aggregate supply. c. market demand. d. market supply.
The situation in which one firm can produce the total output of the market at a lower cost than several firms is called a
A) natural monopoly. B) pure monopoly. C) ruling monopoly. D) cost monopoly.