Commitment devices:
A. need strong commitments that are hard to get out of in order to be successful.
B. can be successful whether they have strong or weak commitments.
C. are never strong commitments that are hard to get out of.
D. are only successful if they are weak commitments that are easy to change.
Answer: B
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____ yields the same results as the theory of perfect competition, but requires substantially fewer assumptions than the perfectly competitive model
a. Baumol's sales maximization hypothesis b. The Pareto optimality condition c. The Cournot model d. The theory of contestable markets e. none of the above
A nation can accelerate economic growth by increasing its production of consumer goods
a. True b. False Indicate whether the statement is true or false
Which of the following would be most likely to cause the production possibilities curve for computers and education to shift outward?
A. A choice of more computers and less education. B. A choice of more education and less computers. C. A reduction in the labor force. D. An increase in the quantity of resources.
If this firm were a perfect competitor, at what output would it produce in the long run?
A. 50 units
B. 60 units
C. 70 units
D. 75 units