Y = C + I + G + NX is an identity because
a. each symbol identifies a macroeconomic variable.
b. the right-hand and left-hand sides are equal when an equilibrium is reached.
c. the equality holds due to the way the variables are defined.
d. None of the above is correct.
c
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If Happy Feet chooses to No Ad, Best Nails should ________ and earn ________ million in net profit.
Happy Feet wants to prevent Best Nails from entering the nail salon market. The above game tree illustrates the different strategies and corresponding payoffs for the two firms. Both Happy Feet and Best Nails have the same strategies of advertising (Ad) or not advertising (No Ad). The payoffs represent net profit in millions.
A) Ad; $2 B) No Ad; $3 C) No Ad; $4 D) Ad; $3
Refer to Figure 7.5. Which diagram represents isoquants for fixed-proportions technology?
A. A
B. B
C. C
D. D
If a firm wants to maximize profits it should
A. hire lots of capital and very little labor since labor needs to be trained. B. equate the marginal revenue product for each input to the price of the input. C. equate the marginal product for each input to the price of the input. D. hire unskilled labor rather than skilled labor since unskilled labor is cheaper.
A European Union official, Mr. McGreevey, claims a portion of EU law involves overregulation. McGreevey is suggesting the EU suffers in part from:
A. government failure. B. market failure. C. fairness. D. the rule of law.