Which of the following questions is not answered by general equilibrium analysis?
A. What outcome is most desirable for the whole society?
B. How will a change in one market affect another market?
C. Can all markets simultaneously be in equilibrium?
D. Are equilibria in different markets compatible with one another?
Answer: A
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Inferior goods may also be referred to as
A) countercyclical goods. B) cyclical goods C) substitutes. D) anti-luxury goods.
Contrary to what believers in the Phillips curve would say, U.S. economic data from 1955 to 2000 show evidence of:
a. a positive relationship between the unemployment rate and inflation. b. no short-run relationship between the unemployment rate and inflation. c. increases in both unemployment and inflation rates. d. a constant rate of inflation, with changing rates of unemployment. e. a constant rate of unemployment, with changing rates of inflation.
If a firm refuses to hire any minorities due to a personal prejudice, its profits
a. will increase markedly. b. will decrease. c. will not be affected. d. will increase slightly.
The MR = MC rule applies:
A. in the short run but not in the long run. B. in the long run but not in the short run. C. in both the short run and the long run. D. only to a purely competitive firm.