Suppose an economist says that "other things equal, the lower the price of bananas, the greater the amount of bananas purchased." This statement indicates that:
A. the quantity of bananas purchased determines the price of bananas.
B. all factors other than the price of bananas (for example, consumer tastes and incomes) are
assumed to be constant.
C. economists can conduct controlled laboratory experiments.
D. one cannot generalize about the relationship between the price of bananas and the
quantity purchased.
Answer: B
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Refer to Cournot Problem. Each firm will produce.
Consider a Cournot oligopoly with two identical firms. These firms each have constant marginal costs of $10. The market for these firms’ product has demand Q = 100 - P. a. 22.5 units b. 30 units. c. 45 units. d. 90 units.
If the exchange rate falls, then the expected profit from holding the currency
A) does not change. B) increases. C) decreases. D) can either increase or decrease.
Legal immigration to the United States peaked just before World War I, but today is almost zero
Indicate whether the statement is true or false
Which of the following is more of a short-run than a long-run goal?
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