In the long run, a year-long drought that destroys most of the summer's wheat crops causes permanently:
A. higher prices.
B. lower prices.
C. lower output.
D. None of these is true.
Answer: D
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Taxes ____ the incentive to work, since they ____ an individual's after-tax earnings
a. reduce; increase b. increase; reduce c. increase; increase d. reduce; reduce
Economists are often required to make unrealistic assumptions concerning the problems they are investigating
a. True b. False Indicate whether the statement is true or false
What word do economists use to refer to the purchase of goods that will be used in the future to produce more goods and services?
a. capital b. consumption c. investment d. costs
Consider a Stackelberg duopoly with the following inverse demand function: P = 100 ? 2Q1 ? 2Q2. The firms' marginal costs are identical and are given by MCi = 2. Based on this information, the Stackelberg follower's marginal revenue function is:
A. MRF(QL,QF) = 100 ? QL ? 2QF. B. MRF(QL,QF) = 100 ? 2QL ? 4QF. C. MRF(QL,QF) = 100 ? 4QL ? 2QF. D. MRF(QL,QF) = 100 ? 2QL ? QF.