Other things the same, when the government spends more, the initial effect is that
a. aggregate demand shifts right.
b. aggregate demand shifts left.
c. aggregate supply shifts right.
d. aggregate supply shifts left.
a
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If, holding the strategies of all other firms constant, no firm can obtain a higher profit by choosing a different strategy, then
A) the firms are using the Cournot model. B) the firms' strategies are a Nash equilibrium. C) the firms must have formed a cartel. D) the firms are using the Bertrand model.
If a nation uses all of its resources to produce capital goods, that will
a. force the government to increase its spending b. leave the production function unchanged c. rapidly increase the profitability of business firms d. raise income and capital gains taxes e. leave no resources available to produce consumption goods
When total revenue minus total economic cost is greater than zero, the firm is
a. earning higher than normal profits. b. earning the normal profit rate. c. making economic losses. d. earning economic profit but accounting losses.
Which of the following is not true about venture capitalists?
A. They provide financial support for entrepreneurial ideas. B. They are a critical link between entrepreneurial ideas and market reality. C. They issue shares of the IPO. D. They share in the risks and rewards of entrepreneurial ideas.