In the classical model, the aggregate supply curve is
A) horizontal. B) vertical.
C) upward sloping. D) downward sloping.
B
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There are two players in a game. At each round of the game, one player has to trust the other for a particular task. In the first round, Player 1 has to decide whether he will trust Player 2
If he does not trust Player 2, he will get one-third of the prize money, while Player 2 will get the rest of the prize money. If he trusts Player 2, Player 2 can either cooperate with him or defect. If Player 2 defects, Player 1 will earn $0, while Player 2 will get the entire prize money. If Player 2 cooperates, each of them will get half the prize money. What will the equilibrium outcome of this game be if Player 1 can impose a guilt penalty of two-thirds of the prize money and is known to be a vengeful player?
Refer to Figure 12-1. If the firm is producing 500 units
A) it should maintain its output to maximize profit. B) it is making a profit. C) it is making a loss. D) it should increase its output to maximize profit.
An index constructed by Alberto Alesina and Lawrence Summers measuring central bank independence for a sample of industrialized countries during the late 1980s notes that the a. most countries have completely independent central banks. b. countries with less independent central banks had lower inflation rates. c. the most independent central banks were those of Switzerland and Germany,
followed by theU.S. Federal Reserve. d. there has been a trend away from central bank independence among countries e. both c and d
A characteristic of outsourcing is
a. completely unrelated to vertical integration b. likely to be profitable exactly when vertical integration is profitable c. it prevents a firm from focusing on its core competencies d. can allow for the exploitation of differing degrees of economies of scale at different points in the supply chain