A point outside (to the right of) the production possibilities curve of a nation:
A. Is not attainable for this nation
B. Is easily attainable for this nation
C. Implies that there are unemployed resources in this nation
D. Implies that this nation is using its resources fully
Answer: A
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In general, the structure of a business firm
A) looks like a market. B) looks like a flat network. C) is largely determined by legal considerations. D) seems more like a central planning agency than a market.
If the government institutes an investment tax credit and decreases income taxes,
a) real GDP falls, and the price level could rise, fall, or stay the same. b) real GDP and the price level fall. c) real GDP rises, and the price level could rise, fall, or stay the same. d) real GDP and the price level rise.
When a prisoners' dilemma game is repeated a finite number of times (T)
A) cooperation unravels during the first round of the game, resulting in the static game Nash equilibrium.
B) cooperation continues until the T-2 round, where the players will switch to a non-cooperative Nash equilibrium.
C) firms cooperate and achieve the collusive Nash equilibrium for all rounds.
D) None of the above.
General equilibrium exists when all markets in an economy are simultaneously in equilibrium.
Answer the following statement true (T) or false (F)