Monopolistic competition means
A) monopolies from several countries compete in the global market.
B) a large number of firms producing homogeneous products.
C) a large number of firms producing differentiated products.
D) few firms producing differentiated products.
Answer: C
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Consider the same ultimatum game as in the previous question but consider some new preferences reflecting a desire for fairness. In particular, now assume players get 1 util per dollar earned but lose 1/4 util for the absolute difference between their monetary payoffs. Which of the following is an offer that arises in a subgame-perfect equilibrium with these new preferences?
a. 1. b. 2. c. 4. d. 5.
The opportunity cost of going to college consists of more than just the tuition that will be paid
a. True b. False
Automatic stabilizers have the effect of
a. Increasing aggregate demand when the nation is below full employment. b. Restraining the decline in demand but not stimulating any increase in aggregate demand that would move the nation back toward equilibrium. c. Causing government spending to rise and taxes to rise as a nation moves into a recession. d. Destabilizing a nation, once you consider the active deficits or surpluses they cause.
The link between the money supply and prices is strongest in:
A. a boom. B. the short run. C. a recession. D. the long run.