The long-run supply curve would be upsloping in:
A. a decreasing-cost industry.
B. a constant-cost industry.
C. a variable-cost industry.
D. an increasing-cost industry.
Answer: D
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Which of the following is true when a Nash equilibrium is reached in a duopoly with homogeneous products?
A) Both the firms earn positive economic profits. B) Each firm charges a price equal to its average fixed cost. C) Both the firms earn zero economic profits. D) Both firms incur huge losses.
If the required reserve ratio is 0.2, and the Fed buys $3,000 of U.S. government securities, the maximum amount by which the money supply can increase is: a. $200
b. $2,000. c. $600. d. $15,000. e. $1,500.
The exchange-rate effect is the idea that a higher U.S. price level causes the value of the dollar to increase in foreign exchange markets, and this effect contributes to the downward slope of the aggregate-demand curve
a. True b. False Indicate whether the statement is true or false
Using Figure 4.2, suppose point C represents the optimal mix of public and private goods for a society. The market mechanism is likely to result in a mix of output represented by point
A. C because the market mechanism is efficient. B. B because the market mechanism tends to overproduce public goods. C. F because the market mechanism is inefficient. D. D because the market mechanism tends to underproduce public goods.