If the productivity of capital increases, the
a. supply curve of capital shifts to the right
b. interest rate decreases
c. firm's MRP of capital increases
d. firm's MRP of capital decreases
e. marginal factor cost decreases
C
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Suppose that monetary neutrality holds. Of the following variables, which ones do not change when the money supply increases?
a. real interest rates b. inflation c. the price level d. real output e. real wages f. nominal wages
The isoquants are normally drawn with a convex shape because inputs are:
A. perfectly substitutable. B. perfect complements. C. normal goods. D. not perfectly substitutable.
If C = 100 + 0.8Y and I = 50, then the equilibrium level of income is
A. 187.5. B. 375. C. 600. D. 750.
Which of the following is true of a Nash equilibrium?
A) A game can have only one Nash equilibrium. B) No player can improve his payoff by changing his strategy once in Nash equilibrium. C) A Nash equilibrium cannot occur if each player is aware of the strategies of other players. D) A Nash equilibrium occurs if each player earns a zero payoff irrespective of the strategy he chooses.