Refer to the information provided in Figure 2.6 below to answer the question(s) that follow.
Figure 2.6Refer to Figure 2.6. If the economy is at ppf2, a change in consumer taste would be shown by a
A. movement along ppf1.
B. movement along ppf2.
C. shift from ppf2 to ppf1.
D. shift from ppf1 to ppf2.
Answer: B
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A subsidy is the same thing as a tax deduction
Indicate whether the statement is true or false
Which of the following will not cause the marginal revenue product of labor curve for a firm to shift?
A. an increase in the productivity of workers B. an increase in the wage rate C. a decrease in the price of the product D. an increase in demand for the product
Refer to the payoff matrix below. If Firm A adopts the low-price strategy, then Firm B would adopt the:
Answer the question based on the following payoff matrix for a duopoly in which the numbers indicate the profit in millions of dollars for each firm:
A. High-price strategy and earn $250
B. High-price strategy and earn $200
C. Low-price strategy and earn $325
D. Low-price strategy and earn $175
Which of the following is true of equilibrium?
A) Equilibrium refers to a situation where an economic agent can be made better off without making anyone else worse off. B) Equilibrium refers to a situation where the government allocates resources among economic agents. C) Equilibrium refers to a situation where all economic agents are making sub-optimal choices and have an incentive to change behavior. D) Equilibrium refers to a situation where all economic agents simultaneously optimize after considering each other's actions.