Which of the following is not an option for a perfectly competitive firm in the short run?
A) Increase its level of production.
B) Decrease its level of production.
C) Shut down.
D) Exit the market altogether.
D
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If workers underestimate inflation, the aggregate supply curve will tend to be
a. upward sloping. b. downward sloping. c. vertical. d. horizontal.
Conventional economic theory suggests that in the ultimatum game, the player proposing a split of $50 will propose that she get $49 and that the other player get $1 . By the same reasoning, if the amount to be split is $1000, the player proposing the split will propose that she gets
a. $500 and that the other player gets $500. b. $998 and that the other player gets $2. c. $999 and that the other player gets $1. d. $1000 and that the other player gets nothing.
Half of the public debt is owned by foreign individuals and institutions.
Answer the following statement true (T) or false (F)
The Chunnel auto tunnel allows motorists to travel between England and France. As an alternative, there is ferry service across the English Channel. What would happen in the market for ferry service if fees for using the Chunnel were increased?
A. The demand for ferry service would increase. B. There would be a downward movement along the demand curve for transits through the Chunnel. C. The demand for ferry service would decrease. D. There would be an upward movement along the demand curve for transits through the Chunnel.