What happens to the SRAS curve when the aggregate price level increases?
What will be an ideal response?
Answer: There is a movement upward along the SRAS.
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In the final phase of benefit-cost analysis, one of the steps that is generally conducted is
a. to compare time-adjusted benefits to zero b. to compare time-adjusted costs to unity c. to determine if PVB and PVC are inversely related d. to determine if an option is feasible
Refer to Scenario 12.2. If each player plays an ideal mixed strategy, then either Jerome or Eliza, but not both, will donate a kidney about ________ of the time
A) 6.25% B) 12.5% C) 37.5% D) 56.25%
What is rent seeking with respect to restricting international trade?
A) The rent on factory buildings increases if trade is restricted. B) The government avoids paying rent on buildings when importers pay the tariff. C) An attempt to capture the gains from trade by imposing a tariff D) The government's efforts to capture tariff rents E) The attempt by importers to avoid paying a tariff
Game theory:
A. is the analysis of how people (or firms) behave in strategic situations. B. is best suited for analyzing purely competitive markets. C. reveals that mergers between rival firms are self-defeating. D. reveals that price-fixing among firms reduces profits.