In the presence of large sunk costs, which of the following market structures generally leads to the highest price?
A. Cournot
B. Stackelberg
C. Bertrand
D. Monopoly
Answer: D
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Compared to the magnitude of the multiplier in an economy without imports, the multiplier in an identical economy with imports is
A) larger only if exports exceed imports. B) smaller only if imports exceed exports. C) always larger. D) exactly the same. E) always smaller.
Refer to the scenario above. A firm producing Good Y will ________
A) earn economic profits if it charges a price of 120 B) incur losses if it charges a price of $200 C) earn zero economic profits if it charges a price of $170 D) shut down production if price falls below $200
Investment, as a part of GDP, includes:
A. stocks. B. bonds. C. gold. D. factories.
The convergence theory is based on the idea of:
A. decreasing marginal returns. B. decreasing income per capita. C. increasing rates of income per capita. D. increasing opportunity costs.