If producers incorrectly set the price of their product too low:
A. a shortage will result.
B. a surplus will result.
C. equilibrium will result.
D. the industry will die out soon.
A. a shortage will result.
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Studies of the HPAE confirm the importance of savings and investment in increasing economic growth
Indicate whether the statement is true or false
The concept of Nash equilibrium states that
A) no firm can improve their outcome holding the other firm's actions constant. B) all firms are earning the highest possible profit. C) firms make alternating output decisions. D) None of the above
If the production of a product results in significant external costs, an appropriate government policy might be to
A) subsidize the production of the good. B) tax producers and thus shift the supply curve to the left. C) tax consumers' incomes and thus shift the demand curve to the left. D) subsidize consumers since the good is being under-consumed.
A government budget surplus may enable all of the following except
A. A decrease in the money supply. B. A decrease in taxes. C. An increase in income transfers. D. An increase in expenditures on goods and services.