Firms 1 and 2 compete in a Cournot duopoly. If firm 2 adopts a strategy that, inadvertently, lowers firm 1's marginal cost:
A. firm 1's reaction function will shift up.
B. firm 1's reaction function will shift down.
C. firm 2's reaction function will shift up.
D. firm 2's reaction function will shift down.
Answer: A
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An increase in the demand for loanable funds increases the equilibrium interest rate and decreases the equilibrium level of saving
a. True b. False Indicate whether the statement is true or false
In a centrally planned economy;
(a) All resources are allocated by the government based on consumer choice. (b) Those with the highest skill levels receive more income than those with the lowest skill levels. (c) All resources are allocated by the government based on their decisions. (d) There are significant incentives to engage in private enterprise
Which location would have the highest net primary productivity?
A. CHILE B. CHINA C. COLOMBIA D. COMOROS
Refer to the information provided in Figure 13.9 below to answer the question(s) that follow. 
Figure 13.9 Refer to Figure 13.9. If competition is introduced into the market, the net social gain may be greater than the area BEC to the extent that
A. the firm may have engaged in rent-seeking behavior, the cost of which would also be avoided. B. firms facing competition may have a greater incentive to cut costs and innovate, which results in gains to society. C. society may value the increase in consumer welfare on equity as well as efficiency grounds. D. All of the above are correct.