When does a subsidy that benefits consumers result in a more efficient allocation of a resource?
A. when the equilibrium price of the good is one that consumers don't like
B. when the good being produced or consumed generates a positive externality
C. when the good being produced or consumed is not scarce
D. when the good being produced or consumed generates a negative externality
Answer: B
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There are two grocery stores in the new neighborhood that you have moved into. Because you did not know which store is better, you decided to go to the one that is relatively crowded. Your behavior is an example of ________
A) herding B) anchoring C) signaling D) sniping
Floating exchange rates are determined by the
a. forces of supply of and demand for currencies. b. governments with a trade surplus. c. governments with a trade deficit. d. IMF under the Bretton Woods Agreement.
Refer to the normal-form game of price competition shown below.Firm AFirm B??CD?A50,50500-x,200?B100,500-x50,50For what values of x is strategy B strictly dominant for firm A?
A. All x > 450 B. All x < 450 C. x < 50 D. x = 450
All of the following are considered a barrier to entry into a market EXCEPT
A) government licenses. B) persistent declining long-run average costs as output increases. C) lowering tariffs. D) governmental regulations of business conduct relating to workplace conditions.