Bread and butter are complements. A decrease in the price of bread results in a(n)
a. decrease in the supply of break
b. increase in the demand for butter
c. increase in the demand for bread
d. increase in resource prices
e. violation of the law of demand
B
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Proponents of ISI assumed that governments
A) were capable of identifying and correcting market failures. B) were capable of identifying and correcting the excesses of economic populists. C) should enact orthodox stabilization plans. D) could control the terms of trade. E) Both A and D.
The circular flow diagram illustrates the flow of resources between households and government
a. True b. False Indicate whether the statement is true or false
According to Say's law,
A) if there is demand for a good, someone will supply it. B) production creates demand sufficient to purchase all goods and services produced. C) supply and demand work together to determine price. D) trading takes longer in a barter economy than in a money economy. E) none of the above
Refer to the following payoff matrix:Player 1Player 2??Low QHigh Q?Low Q$50,$5$15,$30?High Q$40,$2$2,$1Suppose the production game depicted in the payoff matrix is a sequential-move game. Identify the strategy leading to a first-mover advantage for player 1.
A. Player 1 moves first and plays Low Q. Observing player 1's move, player 2's best response is to play High Q. B. Player 1 moves first and plays High Q. Observing player 1's move, player 2's best response is to play Low Q. C. Player 1 moves first and plays Low Q. Observing player 1's move, player 2's best response is to play Low Q. D. Player 1 moves first and plays High Q. Observing player 1's move, player 2's best response is to play High Q.