In the Keynesian framework, as long as output is ________ the equilibrium level, unplanned inventory investment will remain ________, firms will continue to raise production, and output will continue to rise
A) below; negative
B) above; negative
C) below; positive
D) above; positive
A
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________ occurs when one agent in a transaction knows about a hidden characteristic of a good
A) The free-rider problem B) The tragedy of the commons C) Adverse selection D) Moral hazard
If Japan gives up ten bushels of rice to produce one bicycle, while the United States gives up five bushels of rice to produce one bicycle, then:
a. the opportunity cost of producing bicycles in the United States is higher than in Japan. b. Japan has a comparative advantage in the production of bicycles. c. the United States has an absolute advantage in the production of rice. d. total output will be highest if the United States specializes in rice and Japan specializes in bicycles. e. total output will be highest if Japan specializes in rice and the United States specializes in bicycles.
The maximum possible profit that could be earned by a cartel is: a. greater than the monopoly profit
b. equal to the monopoly profit. c. less than the monopoly profit. d. unrelated to the level of monopoly profit.
When demand decreases, and price is the only reason for the decrease, what type of movement will the demand curve show?
A. a shift to the left B. a shift to the right C. along the curve to a higher quantity demanded D. along the curve to a higher price