In the short-run an increase in the costs of production makes
a. output and prices rise.
b. output rise and prices fall.
c. output fall and prices rise.
d. output and prices fall.
c
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In the early 1800s, there was a smallpox outbreak in a remote part of Russia. The government sent in a large group of army doctors, but they were too late to stop the epidemic. Thirty years later, there was another smallpox scare. A local statistician cautioned the government against a similar response, noting the increased mortality and high number of army doctors during the earlier epidemic. Was the statistician providing good advice?
What will be an ideal response?
If, when the price falls, total revenue increases, demand is
A) elastic. B) inelastic. C) unit elastic. D) perfectly inelastic. E) None of the above answers is correct because total revenue always decreases when the price of the good falls.
Refer to the payoff matrix above. Which of the following is the iterated elimination of dominated strategies outcome of the game?
A) Middle/High
B) High/High
C) Low/High
D) Low/Middle
When the Fed sells government bonds to a bank, the initial effect on the bank is that its
a. assets increase b. assets remain the same c. liabilities decrease d. assets decrease e. liabilities increase