According to the figure, The Rock Shop:
This figure displays the choices and payoffs (company profits) of two music shops-MiiTunes and The Rock Shop. MiiTunes is an established business in the area deciding whether to charge its usual high prices or to charge very low prices, in the hopes that a new business will not be able to make a profit at such low prices. The Rock Shop is trying to decide whether or not it should enter the market and compete with MiiTunes.
A. should enter the market, regardless of what MiiTunes chooses to do.
B. should not enter the market, regardless of what MiiTunes chooses to do.
C. does not have a dominant strategy.
D. has more than one dominant strategy.
A. should enter the market, regardless of what MiiTunes chooses to do.
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The increase in income generated by the additional government expenditure decreases the demand for money
Indicate whether the statement is true or false
Suppose the multiplier has a value that exceeds 1, and there are no crowding out or investment accelerator effects. Which of the following would shift aggregate demand to the right by more than the increase in expenditures?
a. an increase in government expenditures b. an increase in net exports c. an increase in investment spending d. All of the above are correct.
Bank holding companies developed:
A. so foreign banks could open branches in the U.S. B. so that unit banks could combine into larger banks. C. to circumvent the regulation by the Office of the Comptroller of the Currency. D. to get around the limitations on bank branching.
If the number of people with the skills necessary to perform a job decreases, labor ________ shifts to the ________.
A. demand; left B. demand; right C. supply; left D. supply; right