Suppose the price of crude oil used to produce gasoline rises significantly. At the same time, consumers purchase hybrid cars in great numbers. In the market for gasoline, the market clearing price ________ and the equilibrium quantity ________
A) definitely falls, is indeterminate
B) is indeterminate, definitely falls
C) definitely falls, definitely rises
D) definitely rises, is indeterminate
B
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Hyperinflationary episodes are always related to extremely rapid growth of:
A) real GDP. B) money demand. C) interest rates. D) money supply.
What is an economic market?
What will be an ideal response?
Consider the following output-choice game for two firms:
Firm 2 - low Firm 2 - medium Firm 2 - high Firm 1 - low 150, 150 100, 160 75, 100 Firm 1 - medium 160, 100 110, 110 50, 75 Firm 1 - high 100, 75 75, 50 0, 0 What is the outcome of the game if both firms use maximin strategies? A) Both firms choose low output levels. B) Both firms choose medium output levels. C) There is no clear outcome under a maximin strategy for both firms. D) There are two possible maximin outcomes --- Firm 1 chooses medium and Firm 2 chooses low, or Firm 1 chooses low and Firm 2 chooses medium.
Most development economists agree that the most basic and important task of any government is to:
A. create a stable political system. B. provide national health care system. C. maintain a stable currency. D. ensure basic education for all citizens.