A good with qualities that consumers lack the experience to assess without assistance is called
A. a credence good.
B. a persuasive good.
C. a search good.
D. an experience good.
Answer: A
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All of the following are elements of a game except which one?
A) a game board B) rules C) payoffs D) strategies
If a monopolistically competitive firm is earning profits in the short run:
A. barriers to entry will allow the firm to enjoy them in the long run as well. B. it is acting like a perfectly competitive firm. C. other firms have an incentive to enter the market. D. it should leave the industry before it gets competed away.
Firm A's motive in filing an antitrust suit against Firm B may be
a. to seek court protection against genuinely unfair practices by Firm B. b. to seek financial compensation for damages caused by Firm B. c. to create an expensive nuisance for Firm B. d. All of the above are correct.
The distinction between real and nominal shocks is that
A. real shocks directly affect only the FE line, but not the LM curve. B. real shocks have a large direct effect on the IS curve and the FE line, but only a small direct effect on the LM curve. C. real shocks directly affect only the IS curve, but not the FE line or LM curve. D. real shocks directly affect only the IS curve or the FE line, but not the LM curve.