A trade deficit occurs when:
a. a country imposes a price floor on the good in which it has a comparative advantage.
b. a country's imports exceed its exports.
c. a country imposes a price ceiling on the good in which it has a comparative advantage.
d. a country's exports exceed its imports.
e. the domestic product market is in disequilibrium.
b
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The amount of funds the Social Security system has loaned the federal government is
A) excluded from the net public debt. B) added to the gross public debt to calculate the net public debt. C) included in the net public debt. D) not included in the gross public debt.
If the price level falls by 5 percent and workers' money wage rates remain constant, firms'
A) quantity of labor demanded will decrease. B) quantity of labor demanded will increase. C) supply of jobs will increase. D) None of the above answers are correct.
Refer to Figure 12-13. Suppose the prevailing price is P1 and the firm is currently producing its loss-minimizing quantity. In the long-run equilibrium
A) there will be fewer firms in the industry and total industry output decreases. B) there will be more firms in the industry and total industry output remains constant. C) there will be fewer firms in the industry but total industry output increases. D) there will be more firms in the industry and total industry output increases.
If Starbucks and Dunkin Donuts are faced with the game in the figure shown, we can see that:
This figure displays the choices being made by two coffee shops: Starbucks and Dunkin Donuts. Both companies are trying to decide whether or not to expand in an area. The area can handle only one of them expanding, and whoever expands will cause the other to lose some business. If they both expand, the market will be saturated, and neither company will do well. The payoffs are the additional profits (or losses) they will earn.
A. Starbucks has a dominant strategy, but Dunkin Donuts does not.
B. Dunkin Donuts has a dominant strategy, but Starbucks does not.
C. neither company has a dominant strategy.
D. both companies have a dominant strategy.