The only goods you consume are pizza and soda. Both are normal goods. For you, pizza and soda are substitutes. Which of the following leads you to buy more of both goods?
A) The price of a pizza falls.
B) The price of a soda falls.
C) Your income increases.
D) Both answers A and B are correct.
C
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In the Cournot model of oligopoly:
A. firms produce differentiated products and set their prices simultaneously. B. firms produce homogenous products and set their prices simultaneously. C. firms choose how much to produce simultaneously and the price clears the market given the total quantity produced. D. firms choose how much to produce and the price to charge simultaneously.
If a country engaged in free trade has an unlimited quantity of imports of a good available at a fixed price, the supply curve for that good is
a. upward sloping. b. perfectly inelastic. c. downward sloping. d. perfectly elastic.
Economists and psychologists are often on opposite sides of the economic growth debate. The nature of the debate is such that
a. economists emphasize the benefits of growth to finance valuable programs, and psychologists question whether more goods make people happier. b. economists emphasize that more money means more income for the government, and psychologists believe poorer people are happier. c. economists believe that economic growth imposes no serious costs on the economy, and psychologists question the statistical reliability of GDP numbers. d. economists stress the importance of money relative to leisure, and psychologists stress the importance of an unstructured life.
The Federal Open Market Committee (FOMC)
A) has six members. B) conducts open market operations. C) is the policy-making body within the Treasury. D) is the governing body of the Federal Reserve System. E) a, b, and c