In the Cournot model, firms take their rivals' reactions as given.
Answer the following statement true (T) or false (F)
True
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Policies which promote education are central to all of the following except:
A. economic development. B. economic growth. C. increasing the capabilities of a society. D. federal reserve bank’s interest rate policy.
An economic theory is tested by: a. assessing the realism of its assumptions
b. polling economists to see if there is consensus as to the validity of the hypothesis. c. comparing and contrasting its simplicity with related theories. d. comparing its predictions with real-world data.
An increase in demand could be caused by
a. a decrease in price
b. a decrease in income, assuming the good is inferior.
c. buyers expecting the price of the good to fall in the near future.
d. an increase in the price of a complement.
Entry into a market characterized by monopolistic competition is generally
A. Entirely blocked by existing firms. B. More difficult than entry into monopolized markets. C. As difficult as in oligopoly. D. Very easy because few barriers exist.