Describe a grim trigger strategy.
What will be an ideal response?
It is strategy where a firm responds to underpricing by choosing a price so low that each firm makes a zero economic profit.
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Tomas wants the city to convert a portion of an existing public park to a covered bus stop so it is more convenient to catch a bus to work each day. Michelle wants the city to expand the park so her kids have an even larger place to play outside
In this situation, Tomas's and Michelle's actions A) reflect natural and morally neutral preferences. B) are easy to separate into right and wrong. C) are all about greed and take no one else into consideration. D) have no possible way of resulting in compromise.
When the price level and the unemployment rate both rise, then the economy experiences cost-push inflation
Indicate whether the statement is true or false
Explain why the rise in the price of a fixed basket of goods tends to overstate the rise in a consumer's true cost of living
The large increase in oil prices in the 1970s was caused primarily by a(n)
a. increase in demand for oil. b. decrease in demand for oil. c. decrease in the supply of oil. d. increase in the supply of oil.