If only two identical firms operate in a market, consumers prefer
A) a Cournot equilibrium.
B) a Stackelberg equilibrium.
C) a collusive equilibrium.
D) any equilibrium since they all result in the same consumer surplus.
B
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Explain how the government gains revenue during inflation
What will be an ideal response?
Consider two lottery winners, Tino who is 65 years old and Sasha who is 32 years old. Which of these two would be expected to have the larger income effect, all else equal?
A) Sasha B) Tino C) Both would have no income effect. D) Both would have equal income effects.
In a fixed exchange rate system, a decrease in the exchange rate at which a currency is pegged is called a(n):
A. appreciation. B. devaluation. C. revaluation. D. depreciation.
Absent government interference, the wage rate for labor in a competitive market is established
A. solely by the firm's demand for labor. B. by both the demand for and supply of labor at each individual firm. C. solely by the market supply of labor. D. by the the market supply and market demand for labor.