The rate of return that households expect on their savings is determined by:
A) exchange rates. B) interest rates.
C) government expenditure. D) tax rates.
B
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Examples of transfer payments are
A) wages, profits, and rents. B) Social Security checks and unemployment insurance payments. C) salaries of educators, police, and firefighters. D) federal government spending for national defense.
The difference between slope and elasticity is that slope
a. is a ratio of two changes, and elasticity is a ratio of two percentage changes. b. is a ratio of two percentage changes, and elasticity is a ratio of two changes. c. measures changes in quantity demanded more accurately than elasticity. d. None of the above is correct; there is no difference between slope and elasticity.
Joe is the owner of the 7-11 Mini Mart, Sam is the owner of the SuperAmerica Mini Mart, and together they are the only two gas stations in town. Currently, they both charge $3 per gallon, and each earns a profit of $1,000. If Joe cuts his price to $2.90 and Sam continues to charge $3, then Joe's profit will be $1,350, and Sam's profit will be $500. Similarly, if Sam cuts his price to $2.90 and Joe continues to charge $3, then Sam's profit will be $1,350, and Joe's profit will be $500. If Sam and Joe both cut their price to $2.90, then they will each earn a profit of $900.For both Joe and Sam, ________ is a ________.
A. leaving the price at $3; dominant strategy B. leaving the price at $3; Nash equilibrium C. cutting the price to $2.90; dominant strategy D. cutting the price to $2.90; dominated strategy
Output decreases when aggregate expenditures ______.
a. increase b. decrease c. stagnate d. destabilize