Figure 10-1
?
If the price level in Figure 10-1 were 100,
A. firms would have to lower their prices.
B. inventories would be accumulating.
C. shortages of goods would exist.
D. aggregate quantity demanded would exceed aggregate quantity supplied.
E. both c and d would occur.
Answer: E
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A) i, ii and iii B) ii and iii only C) i and ii only D) ii only E) iii only
Collusion always involves firms engaging in a
A) vertical merger. B) horizontal merger. C) cooperative game. D) noncooperative game.
The idea behind antitrust legislation is to
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How does time preference affect one's willingness to invest in human capital?
A) A higher rate of time preference tends to increase human capital investment. B) A higher rate of time preference tends to decrease human capital investment. C) A lower rate of time preference tends to decrease human capital investment. D) Economists have found no relationship between time preference and human capital investment.