Say's law promises that each and every firm in the economy will be able to sell all of the particular output it produces
a. True
b. False
B
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The first banking crisis of the 1930s was probably caused by
a. low farm prices. b. the stock market crash. c. antagonism between Wall Street banks and Main Street banks. d. Bank of England attempts to preserve the gold standard by raising interest rates.
Sara is considering the purchase of a new car. Rational self-interest demands that she do an exhaustive research study to acquire every bit of information possible about her potential options
a. True b. False
The law of diminishing marginal utility states that as you consume more and more of a good, other things constant,
a. total utility eventually rises b. marginal utility can become positive c. marginal utility approaches, but never becomes, zero d. total utility can never become negative e. marginal utility eventually declines
Laurel and Janet are competitors in a local market and each is trying to decide if it is worthwhile to advertise. If both of them advertise, each will earn a profit of $5,000 . If neither of them advertise, each will earn a profit of $10,000 . If one advertises and the other doesn't, then the one who advertises will earn a profit of $12,000 and the other will earn $2,000 . In this version of the
prisoners' dilemma, if the game is played only once, Laurel should a. advertise, but if the game is to be repeated many times she should probably not advertise. b. advertise, and if the game is to be repeated many times she should still probably advertise. c. not advertise, but if the game is to be repeated many times she should probably advertise. d. not advertise, and if the game is to be repeated many times she should still not advertise.