Free competitive markets do not process information effectively
Indicate whether the statement is true or false
False
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Explain the principle of the "second best."
What will be an ideal response?
Which of the following is correct?
a. A period of hyperinflation is a period of extraordinarily low inflation. b. A period of deflation is any period during which the inflation rate is decreasing. c. In the 1970s, U.S. inflation averaged about 7.8 percent per year d. All of the above are correct.
The table below gives the quantities and prices for 2005 and 2015 for an economy that produces just two goods: sailboats and coconuts. Quantities ProducedPrices?2005201520052015Sailboats1020$500$525Coconuts2,0002,400$1$2 For this economy that produces just sailboats and coconuts, and with 2005 as the base year, nominal GDP was approximately ________ times larger in 2015 than it was in 2005.
A. 2.19 B. 1.34 C. 1.65 D. 1.77
If firms are in Cournot equilibrium:
A. firms could increase profits by jointly increasing output. B. firms could increase profits by jointly reducing output. C. each firm could increase profits by unilaterally decreasing output. D. each firm could increase profits by unilaterally increasing output.