When economists refer to a firm's capital, they are describing the
a. markets for final goods and services.
b. stock of equipment and buildings used in production.
c. amount of bank financing used by the firm.
d. amount of financing provided by the equity markets.
b
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Refer to Figure 4.1. The dominant strategy for Simon is
A) Up B) Down C) both Up and Down D) Simon does not have a dominant strategy.
A decrease in the real interest rate occurs when ________
A) there is an autonomous tightening of monetary policy B) expected inflation increases, relative to the nominal interest rate C) a decrease in autonomous spending causes a decrease in equilibrium output D) all of the above E) none of the above
In the short run, a restrictive fiscal policy will cause aggregate demand, output, and the price level to change in which of the following ways?
A) Decrease/Decrease/Decrease B) Decrease/Increase/Increase C) Increase/Decrease/Decrease D) Increase/Decrease/Increase E) No change/No change/No change
Kara and Kyle are competing sockeye salmon fishers. Both have been allocated ITQs that limit their catch to 2,000 tons of sockeye salmon each. Kara's cost per ton is $8; Kyle's cost per ton is $12. Refer to the information given. If the market
price of sockeye salmon is $15 per ton, what is the maximum amount Kara would be willing to pay per ton for Kyle's ITQs? A. $3. B. $7. C. $8. D. $15.