The tools of "game theory" are most helpful to economists in markets characterized by:
a. perfect competition
b. oligopoly.
c. monopolistic competition.
d. monopoly.
b
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The classic resource study of Barnett and Morse found that
a. resource costs have been rising at such a rate that, within fifty years, the prices of most natural resources will be exorbitant. b. the current proved reserves of most minerals are becoming perilously low. c. resource prices declined between 1870 and 1920, but since 1920 the relative price of natural resources has been increasing at an annual rate of approximately 3.5 percent. d. technology and developing substitutes outran our use of scarce natural resources during the last century, so that relative resource prices have declined.
One way of expressing the tradeoff between income equality and efficiency is to say the more equally the pie is divided, the
If an economist recommends that the government reduce the tax rate in order to increase tax revenues (based on the Laffer curve), she is implicitly assuming that the economy is currently operating at a point
A) inside the Laffer curve. B) outside the Laffer curve. C) on the upward-sloping portion of the Laffer curve. D) on the downward-sloping portion of the Laffer curve. E) where tax revenues are maximized.
Positive economic principles are those that:
A. predict how people will behave. B. are influenced by political ideology. C. are always correct. D. indicate how people should behave.