In game theory, a strategy
A) is useless, because firms are subject to bounded rationality.
B) is useful in static games, but not in dynamic games.
C) defines the specific actions a firm will make.
D) determines the payoff matrix of the game.
C
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Suppose the economy is at full employment and firms become more optimistic about the future profitability of new investment. Which of the following will happen in the short run?
A) The aggregate demand curve will shift to the left. B) Output will decline. C) Unemployment will decline. D) Prices will decline.
A French company floating a bond issued in Swiss francs in Switzerland would be selling a foreign bond.
a. true b. false
Economists have difficulty applying the scientific method because:
A. Economics has a short history B. The scientific method does not really apply to economics C. People are the focus of economics, and their behavior is highly predictable D. Controlled laboratory experiments in economics are often not feasible
A government wants to reduce electricity consumption by 10%. The price elasticity of demand for electricity is -0.1. The government must ________ the price of electricity by ________.
A. lower; 20% B. raise; 100.0% C. raise; 10.0% D. raise; 1.0%