If MRP > P, a firm should use less of that input
a. True
b. False
Indicate whether the statement is true or false
False
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A game in which players want to coordinate on an outcome and in which both agree that coordinating on one particular outcome is preferred to coordinating on the other is called
A) an assurance game. B) a pure coordination game. C) a battle of the sexes game. D) a chicken game.
Which of the following is a major area of disagreement between activists and nonactivists?
a. Activists believe discretionary macroeconomic policy can be applied in a manner that will enhance economic stability. Nonactivists disagree. b. Activists believe monetary policy is more potent than fiscal policy. Nonactivists disagree. c. Activists believe changes in monetary and fiscal policy exert their effects instantaneously. Nonactivists think they work only with a substantial lag. d. Nonactivists think macroeconomic policy is sometimes motivated by the pursuit of political gain. Activists disagree.
Al's Aluminum Company sells $1 million worth of aluminum to Shiny Foil Company, which uses the aluminum to make aluminum foil. Shiny Foil Company sells $4 million worth of aluminum foil to households. The transactions just described contribute how much to GDP?
a. $1 million b. $3 million c. $4 million d. $5 million
The actual value of the price elasticity of demand is always
A. positive because of the law of demand. B. positive because of diminishing marginal utility. C. negative because percentages can only be negative. D. negative because of the law of demand.