If the median voter theorem is viewed as a two-player game, with the two players being the candidates running for office, a Nash equilibrium occurs when the candidates hold the most extreme, opposite political views
Indicate whether the statement is true or false
FALSE
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When regulators identify with the special interests of the industry they regulate, this behavior conforms with the
A) share-the-gains, share-the-pains hypothesis. B) rate-of-return hypothesis. C) lemon market hypothesis. D) capture hypothesis.
When price was 10, quantity demanded was 50. When price decreased to 8, quantity demanded increased to 60. Therefore, when price decreased, total revenue
A. decreased from 500 to 480, indicating that demand is inelastic. B. decreased from 500 to 480, indicating that demand is elastic. C. increased from 480 to 500, indicating that demand is inelastic. D. increased from 480 to 500, indicating that demand is elastic.
The law of diminishing returns explains why
a. monopolies have a guaranteed profit margin b. short-run MC and AVC curves are U-shaped c. the production possibilities curve is bowed out d. long run supply curves are downward sloping e. total product is a straight line
If the rate of interest increases, firms will most likely respond by: a. increasing investment
b. decreasing investment. c. not changing investment. d. increasing their capital stock.