If economists forecast an increase in aggregate expenditure, which of the following is likely to occur?
A) GDP will fall. B) Wages will fall.
C) Inventories will rise. D) GDP will rise.
D
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The aggregate quantity of goods and services produced will decrease at every price level when resource price rises
a. True b. False Indicate whether the statement is true or false
The goal of requiring licenses for hunting and fishing is
a. to reduce the use of a common resource. b. to ensure that the people hunting and fishing are qualified. c. to generate revenue for the government. d. to monitor compliance with federal gun laws.
The dominant strategy allows a firm to
A) obtain the highest benefit, regardless of its rivals' actions. B) transform a negative-sum game into a positive-sum game. C) transform a zero-sum game into a positive-sum game. D) escape from a Prisoners' Dilemma situation.
That U.S. drug companies can sell their drugs in Canada and Mexico for much less than they sell them for in the U.S. suggests that the
A. marginal cost of producing the drugs is higher than even the U.S. price. B. marginal cost of producing the drugs is less than the Canadian and Mexican price. C. drugs sell for less than their marginal cost in Canada and Mexico. D. marginal cost of producing the drugs is between the U.S. price and the Canadian price (so on average the company is making a profit).