The formal and informal institutions that support the economy including the laws, customs, manners, conventions, and other institutional under-pinnings that encourage people to pursue productive activity are called the rules of the game
Indicate whether the statement is true or false
true
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If identical firms sell an undifferentiated product, advertising is likely to be
A) used to attack the rivals' products. B) collectively undertaken by the industry group. C) strategically aimed at deterring entry. D) focused on secret ingredients.
In the short run, the expansion path is
A) horizontal. B) vertical. C) diagonal. D) indeterminate.
Which of the following is an implication of the modern view of the Phillips curve?
a. Higher rates of inflation always lead to lower rates of unemployment. b. Higher rates of inflation always lead to higher rates of unemployment. c. If actual inflation exceeds the inflation rate anticipated by decision makers, unemployment will temporarily fall below the natural rate. d. If actual inflation exceeds the inflation rate anticipated by decision makers, unemployment will temporarily rise above the natural rate.
Supply and demand analysis suggests that a sharp increase in the price of gasoline will cause the
a. price of fuel-efficient compact cars to decrease. b. supply of gasoline to decrease. c. demand for large luxury cars to increase. d. demand for fuel-efficient cars to increase.