Refer to the budget line shown in the diagram. If the consumer's money income is $20, the:
A. prices of C and D cannot be determined.
B. price of C is $2 and the price of D is $4.
C. consumer can obtain a combination of 5 units of both C and D.
D. price of C is $4 and the price of D is $2.
D. price of C is $4 and the price of D is $2.
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Refer to Table 14-8. If the two firms collude, is there an incentive for either to cheat on the collusion agreement?
A) Yes, but only Brawny Juice is in a position to gain by cheating. B) Yes, but only Power Fuel is in a position to gain by cheating. C) Yes, either firm can gain if it, alone, cheats. D) No, neither firm can gain by cheating.
A ________ in market interest rates relative to the discount rate will cause discount borrowing to_______
A) fall; increase B) rise; decrease C) rise; increase D) fall; remain unchanged
Which of the following situations is likely to generate noncooperative behavior in repeated games?
A) The game is repeated a finite number of times. B) There are many players in the game. C) The payoffs can change rapidly from one game period to the next. D) All of these situations can generate noncooperative behavior.
According to the rational expectations theory, people's predictions about the future course of governmental economic policy influence the position of the short-run aggregate supply curve
a. True b. False Indicate whether the statement is true or false