Which of the following terrorist acts makes the most sense from the perspective of the "rational terrorist"?
A. attempting to attack a well-defended target
B. attacking a lightly-defended target in a media center
C. quietly killing a CIA agent
D. attacking a lightly-defended target in a remote area
Answer: B
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In the game in Scenario 13.7, the strategy pair that pays
A) $69,000 to each player is the only equilibrium. B) ($0, -$1000 ) is the only equilibrium. C) (-$1000, $0 ) is the only equilibrium. D) $0 to each player is the only equilibrium. E) $69,000 to each player and the strategy pair that pays $0 to each player are equilibria.
Suppose that technological advancements stimulate $20 billion in additional investment spending. If the MPC = .6, how much will the change in investment increase aggregate demand?
A. $12 billion B. $20 billion C. $50 billion D. $33.3 billion
Like a perfect competitor, a monopolistic competitor:
a. produces where price equals marginal cost. b. produces a homogeneous product. c. earns zero economic profit in the long run. d. earns zero economic profit in the short run.
If velocity remains constant, which of the following examples would cause inflation?
a. Money supply increases by 8 percent; real GDP increases by 6 percent. b. Money supply increases by 5 percent; real GDP increases by 5 percent. c. Money supply increases by 4 percent; real GDP increases by 7 percent. d. Money supply increases by 9 percent; real GDP increases by 10 percent.