An economy's potential level of output can be altered by changes in:
a. the actual price level
b. the expected price level.
c. aggregate demand.
d. real GDP.
e. its stock of capital.
e
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As a person consumes more of a good, the
A) marginal benefit increases. B) marginal benefit decreases. C) marginal benefit increases or decreases depending whether or not the economy is on the PPF. D) price of the good falls.
Decrease in government spending will ________ the expenditure curve:
A) decrease. B) increase. C) not change. D) none of the above.
Monopolizing the sale of liquor
A) can lead to an increase total welfare. B) will decrease total welfare. C) results in a deadweight loss. D) is anti-competitive and thus lowers total welfare.
The prisoner's dilemma is a well-known game in which:
A. players always cheat. B. noncooperation between prisoners is not the best joint action but is the best independent action. C. players never cheat. D. cooperation between prisoners is always the best independent action.