Cournot duopolists face a market demand curve given by P = 90 - Q where Q is total market demand. Each firm can produce output at a constant marginal cost of 30 per unit. If the duopolists behave as a shared monopoly, the equilibrium price and total quantity of output will be
A. Q = 45, P = 45.
B. Q = 30, P = 60.
C. Q = 40, P = 50.
D. Q = 60, P = 30.
Answer: B
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When we compare shares of income earned by U.S. households, which of the following statements about the distribution of income is true?
A) Shares of income decrease as we move from the lowest quintile to the highest quintile. B) Shares of income increase as we move from the lowest quintile to the highest quintile. C) Shares of income remain fairly constant as we move from the lowest quintile to the highest quintile. D) Shares of income decrease as we move from the lowest quintile to middle quintile, and then decrease from the middle quintile to the highest quintile.
Calculate t-statistics for each variable and explain what this tells you
What will be an ideal response?
Country Costa and Country Delta initially have the same real GDP per capita. Country Costa experiences no economic growth, while Country Delta grows at a sustained rate of 3.5 percent. In 20 years, Country Delta's GDP will be approximately ___________ that of Country Costa.
a. triple b. double c. one-half d. one-fourth
Refer to the diagram. Initially assume that the investment demand curve is ID 1 . The crowding- out effect of a large public debt would be shown as a(n):
A. shift of the investment demand curve from ID 1 to ID 2 .
B. leftward shift of the investment demand curve.
C. increase in the interest rate from 4 percent to 6 percent and a decline in investment spending of $5 billion.
D. increase in the interest rate from 6 percent to 8 percent and a decline in investment
spending of $40 billion.