To conduct a partial equilibrium analysis of a change in consumer preferences toward coffee and away from tea, you must consider
A. changes in the amount of resources allocated to the production of coffee.
B. changes in the price of resources allocated to the production of coffee.
C. changes in the equilibrium price and quantity of coffee.
D. all of the above
Answer: D
You might also like to view...
In the Cournot model
A) market price is unaffected by the actions of any individual firm. B) firms do not have to worry about the strategies of the other firms. C) firms' profits are independent. D) firms' profits are interdependent.
The reduced form equation for X
A) regresses the endogenous variable X on the smallest possible subset of regressors. B) relates the endogenous variable X to all the available exogenous variables, both those included in the regression of interest and the instruments. C) uses the predicted values of X from the first stage as a regressor in the original equation. D) uses smaller standard errors, such as homoskedasticity-only standard errors, for inference.
The seven members of the Board of Governors of the Federal Reserve are appointed by
A) Congress. B) the President. C) the Governors of the States. D) leaders in the banking industry. E) the Treasury Department.
A game in which any gains one player makes are offset by equal losses by another player is known as a
A. zero-sum game. B. positive-sum game. C. negative-sum game. D. cooperative game.