Consider the market for nonalcoholic beers from the previous question. Which of the following is the best-response function for Boors from the Bertrand game?
a. PB = -2.5 + .05PC
b. PB = 2.5 + .05PC
c. PC = 2.5 - .05PB
d. PB = 2.5 - .15PC
b
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In order to reduce or eliminate a chronic shortage in the market for a currency under a fixed exchange rate system, we must devalue the currency
Indicate whether the statement is true or false
Which of the following empirical studies cast the most doubt on the Heckscher-Ohlin model?
A) the study by Wassily Leontief B) the study by Bowen, Leamer, and Sveikauskas C) the study by David Ricardo D) the study by Adam Smith E) the study by Davis and Weinstein
Over the past twenty years the Fed's policy experience
a. has been good and improving b. is an indicator that economic policy is confused c. shows a focus on full employment d. reveals a lack of concern about unemployment e. has been generally poor and deteriorating
The tax system is how modern governments shift resources from
a. producing goods to producing services b. government to the private sector c. the private sector to government d. the U.S. Treasury to the Federal Reserve System e. one sector of the economy to another