A country has a population of 10 million people with 1 million unemployed, which is an unemployment rate of 20%. The number of people in the labour force is therefore:
(a) 10 million;
(b) 5 million;
(c) 1 million;
(d) 2 million.
Answer: (b) 5 million;
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If firms in a duopoly with homogeneous products compete on price, a Nash equilibrium is reached when each firm charges a price ________
A) equal to its average cost B) higher than its average cost C) equal to its marginal cost D) lower than its marginal cost
Two candidates are running for election as mayors of New York City that was recently impacted by Superstorm Sandy. In their election platforms, both candidates supported spending very similar amounts on hurricane protection
This similarity is most likely the result of A) both candidates necessarily having the same preferences towards risk and protection. B) the Principle of Minimum Differentiation. C) both the candidates realize that hurricane protection is a public good. D) politicians only take efficiency into account and hence all candidates will suggest the efficient outcome.
If you considered steak and lobster to be perfect substitutes for each other, your indifference curves between them would be L-shaped
Indicate whether the statement is true or false
The substitution effect is the concept that changes in consumption of a good result from changes in the relative price of a jointly consumed good
a. True b. False Indicate whether the statement is true or false