In a Walrasian equilibrium, which of the following constrains an individual when he optimizes?
a. The market prices.
b. His tastes.
c. The actions of other individuals.
d. Nothing-the individual has no constraints in a Walrasian equilibrium.
a. The market prices.
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Refer to Figure 15-11. In the dynamic model of AD-AS in the figure above, if the economy is at point A in year 1 and is expected to go to point B in year 2, the Federal Reserve would most likely
A) decrease the inflation rate. B) decrease interest rates. C) not change interest rates. D) increase interest rates.
The ability to produce at a lower opportunity cost than someone else is referred to as: a. absolute advantage
b. comparative advantage. c. absolute superiority. d. competitive disadvantage.
What is meant by a "discriminating monopolist"?
a. The firm discriminates on the basis of hiring workers. b. The firm violates all antitrust laws. c. The firm evades taxes. d. The firm sells its product at different prices in different markets.
How should firms in perfectly competitive markets decide how much to? produce? Perfectly competitive firms should produce the quantity where