If two firms behave as Cournot duopolists, the level of social welfare is lower than if the same firms act as a cartel
Indicate whether the statement is true or false
False. The Cournot duopolists produce more at a lower price than a cartel. Thus, social welfare is lower with a cartel.
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An increase in the supply of labor will ________ real wages and ________ employment
A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease
What are the main reasons for deviations from PPP? Give, at least, 5 reasons with a short explanation
What will be an ideal response?
Administrative costs make small loans less profitable than large ones, other things equal
a. True b. False
If consumer incomes go up and cars are a normal good, the effect on the demand for cars ceteris paribus, will be a(n):
a. upward movement along the demand curve for cars. b. downward movement along the demand curve for cars. c. rightward shift in the demand curve for cars. d. leftward shift in the demand curve for cars.