Suppose there is a temporary supply shock because of a war in the Middle East, then, ceteris paribus, the ensuing cost push shock ________
A) would lead to a temporary increase in prices but a permanent reduction in output
B) would lead to a temporary increase in output but a permanent increase in inflation
C) would lead to a temporary decrease in output but a permanent increase in inflation
D) all of the above
E) none of the above
E
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How did the Soviet model of communism compare to that of Karl Marx?
A. The models were identical. B. The Soviet model was faithful to the Marxian model, but it had been modified slightly over the years. C. What the Soviets were operating all these years was a classic capitalist model. D. While there was public ownership of the means of production, there did not appear to be a very close resemblance to the Marxian model.
In a partnership of two people
A) each person has 50 percent liability. B) it is more difficult to specialize with two persons than with one. C) each person has unlimited liability. D) the law releases each partner from legal liabilities.
Refer to Figure 8.1. If Charla and Mirna agree to pay each other $350 to install the pollution-control device on their heating systems, the Nash equilibrium would be found when Charla plays ________ and when Mirna plays ________
A) Install; Install B) Install; Don't Install C) Don't Install; Install D) Don't Install; Don't Install
An increase in autonomous consumption has the same equilibrium effect as a(n)
a. decrease in investment. b. increase in investment. c. decrease in net exports. d. increase in taxes.