An individual can avoid risks associated with a transaction by purchasing insurance
Indicate whether the statement is true or false
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How does a fall in the money wage rate affect the aggregate supply curve?
What will be an ideal response?
An increase in the money supply will tend to
A. lower interest rates and lower the equilibrium GDP. B. lower interest rates and increase the equilibrium GDP. C. increase interest rates and increase the equilibrium GDP. D. increase interest rates and lower the equilibrium GDP.
The "Classical Dichotomy" refers to:
a. a distinction between "value in use" and "value in exchange." b. separate theories of demand and supply. c. the possibility of Giffen's Paradox. d. determination of relative prices independent of the nominal price level.
If MiiTunes and The Rock Shop are both in the music business and faced with the choices outlined in the figure shown, we can predict the outcome will be that:
This figure displays the choices and payoffs (company profits) of two music shops-MiiTunes and The Rock Shop. MiiTunes is an established business in the area deciding whether to charge its usual high prices or to charge very low prices, in the hopes that a new business will not be able to make a profit at such low prices. The Rock Shop is trying to decide whether or not it should enter the market and compete with MiiTunes.
A. MiiTunes charges low prices and The Rock Shop does not enter.
B. MiiTunes charges high prices and The Rock Shop enters.
C. MiiTunes charges high prices and The Rock Shop does not enter.
D. MiiTunes charges low prices and The Rock Shop enters.