Drawing demand and supply curves assumes that the primary variable influencing decisions to produce and purchase goods is:
A. incomes.
B. expectations.
C. price.
D. preferences.
Answer: C
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Define savings rate. If the aggregate savings in an economy is $10,000 and the aggregate income in the economy is $70,000, what is the savings rate in the economy?
What will be an ideal response?
In the production function for new ideas and technology in ________, a decrease in the labor force will ________ the growth rate of technological change
A) the AK growth models; decrease B) the AK growth models; increase C) the two-sector growth model; decrease D) the two-sector growth model; increase
If an incumbent cannot commit and faces an identical potential entrant with relatively high fixed costs that are below the level where entry is blockaded, the incumbent will
A) produce the Cournot duopolist level of output. B) produce the Stackelberg leader level of output. C) set price equal to marginal cost. D) produce a level of output that is greater than the Stackelberg leader level of output.
Assuming competitive markets with typical supply and demand curves, which of the following statements is correct?
A. An increase in supply with no change in demand will result in an increase in price. B. An increase in supply with no change in demand will result in a decline in sales. C. An increase in demand with no change in supply will result in an increase in sales. D. An increase in supply with a decrease in demand will result in an increase in price.