If price increases and the quantity purchased increases, we know that
A) supply increased.
B) supply decreased.
C) demand increased.
D) demand decreased.
Answer: C
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A technique for locating equilibria by marking the best strategy a player can use to counter each of his or her rival's possible moves is called
A) a win-win situation. B) cooperative coordination. C) cell-by-cell inspection. D) best-response analysis.
Classifying a good as excludable means
A) that anyone who does not pay for the good cannot consume it. B) that consumption of the good generates no externalities. C) that a producer with patent or copyright protection can exclude any other producer from selling the product. D) that someone can be barred from consuming the good based on race, ethnicity, or some other irrelevant characteristic.
The most popular diagnosis of poverty is Flawed Character
Indicate whether the statement is true or false
If aggregate demand turns out to be lower than anticipated, then the short-run equilibrium occurs at an output level ________ potential output. This difference between short-run equilibrium output and potential output is called a(n) ________ gap
a. below; expansionary b. below; recessionary c. above; expansionary d. above; recessionary