Which of the following actions would government take to increase economic growth:
A. Decrease exports
B. Increase taxes
C. Increase government spending
D. Decrease government subsidies
C. Increase government spending
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The minimum point of a U-shaped curve,
A) is a point where the variable is neither increasing nor decreasing. B) has a slope equal to zero. C) has the maximum slope possible. D) Both answers A and B are correct. E) Both answers A and C are correct.
GDP does not directly measure those things that make life worthwhile, but it does measure our ability to obtain many of the inputs into a worthwhile life
a. True b. False Indicate whether the statement is true or false
Consider the following entry game: Here, firm B is an existing firm in the market, and firm A is a potential entrant. Firm A must decide whether to enter the market (play "enter") or stay out of the market (play "not enter"). If firm A decides to enter the market, firm B must decide whether to engage in a price war (play "hard"), or not (play "soft"). By playing "hard," firm B ensures that firm A makes a loss of $2 million, but firm B only makes $2 million in profits. On the other hand, if firm B plays "soft," the new entrant takes half of the market, and each firm earns profits of $4 million. If firm A stays out, it earns zero while firm B earns $8 million. Which of the following are Nash equilibrium strategies?
A. (enter, soft) and (not enter, soft) B. (enter, hard) and (not enter, soft) C. (not enter, hard) and (enter, soft) D. (enter, hard) and (not enter, hard)
The real rate of interest is
A) the nominal interest rate plus the inflation rate. B) the nominal interest rate minus the inflation rate. C) the interest rate determined by the supply and demand in the money market. D) the nominal interest rate.