The demand for a luxury good whose purchase would exhaust a big portion of one's income is:
A. perfectly price inelastic.
B. perfectly price elastic.
C. relatively price inelastic.
D. relatively price elastic.
Answer: D
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Refer to the scenario above. In this case, a Nash equilibrium occurs if ________
A) each of them bids up to their value for the good B) Tom and Roger bid up to their value for the good while Bill and Jeff bid below their value for the good C) Tom and Jeff bid up to their value for the good while Roger and Bill bid below their value for the good D) Bill and Jeff bid up to their value for the good while Tom and Roger stop bidding at $100 and $200, respectively
A failure in coordination between workers and employers is most likely to cause an expansionary gap
a. True b. False Indicate whether the statement is true or false
The Laffer curve is a graph of the relationship between tax rates and:
a. real GDP. b. total tax revenues. c. government spending. d. inflation.
Holding other factors constant, if growing concerns about job security raise precautionary saving, then the real interest rate will ________ and the equilibrium quantity of national saving and investment will ________.
A. decrease; decrease B. increase; decrease C. increase; increase D. decrease; increase