A lower real interest rate ________ saving and ________ consumption spending.
A. does not change; does not change
B. decreases; increases
C. increases; decreases
D. increases; increases
Answer: B
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A firm would decide to shut down if its production resulted in
A) AFC > AVC. B) MR < AVC. C) ATC > AVC. D) MR < ATC.
Which of the following is incorrect? The ill effects of the Great Recession were:
a. Mainly restricted to large financial institutions. b. Mainly restricted to credit markets and had little effect on the real goods market. c. Mainly restricted to the U.S. stock market. d. Felt nationwide and had strong effects internationally. e. All of the above are incorrect.
Refer to the graph shown. If the price were somehow held at $8.15 per unit, producer surplus would then equal:
A. 1,400. B. 1,171.5. C. 600. D. 423.5.
The manner in which one oligopolist reacts to a change in price, output, or quantity on the part of another oligopolist in the industry is known as
A) a positive-sum game. B) the reaction function. C) a noncooperative game. D) a zero-sum game.