Which of the diagrams illustrate(s) the effect of a decline in the price of personal computers on the market for software?
A. A only.
B. A and D.
C. B only.
D. D only.
A. A only.
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Attempts to influence the law for your own private economic advantage is called
A) tax imposition. B) subsidizing. C) rent seeking. D) creating a deadweight loss.
In the neoclassical growth model, if two countries are exactly the same but one has a higher savings rate, we would expect that country to have
a. higher output, a higher capital-to-labor ratio, and higher output growth in the steady state. b. higher output, a higher capital-to-labor ratio, and the same output growth in the steady state. c. the same output and capital-to-labor ratio, but higher output growth in the steady state. d. higher output, the same capital-to-labor ratio, and the same output growth in the steady state.
A price floor above the market clearing price typically results in I. an excess quantity supplied II. a shortage III. an excess quantity demand
A) I only B) II only C) III only D) II and III only
Which of the following explains how a cartel with 100 percent control might raise price to monopoly-like levels?
a. By setting a group output level equal to a profit-maximizing monopolist, and then assigning binding quota shares to cartel members. b. By setting an official price that members can secretly undercut. c. By forbidding price competition, but allowing non-cooperative rivalry in output levels. d. None of the above.