The short-run aggregate supply curve is upsloping because higher price levels:
A. lower interest rates and encourage firms to invest and produce more.
B. create incentives to expand output when resource prices are unresponsive to price-level
changes.
C. encourage importation of foreign goods.
D. create an expectation among producers of still higher price levels.
B. create incentives to expand output when resource prices are unresponsive to price-level
changes
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The owner of a garage makes large contributions to a politician who is seeking the office of state governor. If his candidate wins, he will get the contract, which now resides with a competitor, to repair State Police vehicles. This is an example of
A. moral hazard. B. externality. C. rent seeking. D. investment.
Among the countries that use the euro, the real exchange rate ________ and the nominal exchange rate ________
A) is fixed; is fixed B) is fixed; can change C) can change; is fixed D) can change; can change
When, in the game in Scenario 13.14, the strategy that would not be chosen under any circumstances is removed, what is left is a
A) Battle of the Sexes game. B) Matching Pennies game. C) Prisoners' Dilemma game. D) Beach Location game. E) constant-sum game.
The intersection of a firm's marginal revenue and marginal cost curves determines the level of output at which
a. total revenue is equal to variable cost. b. total revenue is equal to fixed cost. c. total revenue is equal to total cost. d. profit is maximized.