In the above figure, the combination of personal computers and televisions shown by point w
A. is an efficient use of society's resources because it is below the production possibilities curve.
B. is attainable but involves the inefficient use of some of society's resources.
C. is beyond the capacity of society to produce.
D. is more desirable than point x because producing at point w does not put a strain on society's resources.
Answer: B
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In the above figure, suppose that the government sets a limit to production at 10 units of output and the price rises to $4. In comparison to a competitive market the consumer surplus would fall by
A) $0. B) $10. C) $15. D) $20.
Under a fixed exchange rate system, if the government decides to devalue its currency, net exports will ________ and the IS curve will shift to the ________
A) increase; left B) increase; right C) decrease; left D) decrease; right
The difference between a Nash equilibrium and a subgame-perfect equilibrium is:
a. the former requires rational play both on and off the equilibrium path but the latter requires rational play only on the equilibrium path. b. the former requires rational play only on the equilibrium path but the latter requires rational play both on and off the equilibrium path. c. Nash equilibria are a subset of the subgame-perfect equilibria. d. nothing; they are synonyms.
Along a supply curve: a. supply changes as price changes
b. quantity supplied changes as price changes. c. supply changes as technology changes. d. quantity supplied changes as technology changes.