If you have $1,000 in an account that offers "3x" margin, you can effectively buy:
A. $1,000 worth of stocks.
B. $2,000 worth of guaranteed government bonds.
C. $3,000 worth of stocks.
D. $3,000 worth of guaranteed government bonds.
C. $3,000 worth of stocks.
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Economic incentives are designed to make individual self-interest coincide with social interest. According to economists, which of the following methods of pollution control best uses economic incentives to reduce pollution?
A) imposing quantitative limits on the amount of pollution and imposing a penalty for non-compliance with these limits B) rewarding environmental groups for monitoring the activities of private firms that produce products which generate pollution C) requiring the installation of specific pollution control devices D) instituting a system of tradable emission allowances
The above figure shows the payoff matrix for two firms, A and B, selecting an advertising budget. The firms must choose between a high advertising budget and a low advertising budget. A Nash equilibrium
A) occurs when both firms select a high advertising budget. B) exists at any of the four possible strategy combinations because there is never an incentive to change strategy. C) is for both firms to choose the low advertising budget because this yields the highest joint profit. D) does not exist because firm A does not have a dominant strategy.
Oligopolies can be characterized as a strategic game among rival companies.
Answer the following statement true (T) or false (F)
At the planned output level, short-run average total cost equals long-run average total cost, but at all other points, short-run average total cost is higher than long-run average total cost.
Answer the following statement true (T) or false (F)