If an economy described by the production function Y=K0.5, has 30 percent of output invested in new capital and 6 percent of the capital stock depreciated each year, what is the steady state level of output?
A) 1.8 units
B) 3 units
C) 5 units
D) 6 units
Answer: C) 5 units
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If the market in the figure above is a profit-maximizing single-price monopoly, the deadweight loss is the area ________
A) ABH B) BFGH C) ACG D) BCD E) ACE
Is the United States a command economy, a laissez-faire economy, or neither? Explain
What will be an ideal response?
Under perfect capital mobility and flexible exchange rates, monetary policy works through the
a. interest rate. b. exchange rate. c. exports. d. Both b and c e. None of the above
This prisoner's dilemma game shows the payoffs associated with two firms, A and B, in an oligopoly and their choices to either collude with one another or not.
According to the matrix shown, the profit-maximizing outcome for the firms is:
A. to act like a monopolist and both collude. B. for Firm A to compete and Firm B to collude. C. to both compete. D. for Firm B to compete and Firm A to collude.