The short-run industry supply curve slopes up because
A) the firms eventually experience diseconomies of scale.
B) the law of diminishing marginal product applies in the short run.
C) wages increase as the industry increases output.
D) the higher price is needed to get more firms to enter the industry.
Answer: B
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Which of the following is not a method to reduce the inflationary gap?
A. Increasing government spending B. Reducing transfer payments C. Raising taxes D. Decreasing government expenditure
Which of the following statements about tariffs is true?
A. The revenue gained from tariffs equals the total cost that tariffs impose on consumers. B. The costs of tariffs are proportionately higher for high-income groups than for low-income groups. C. U.S. consumers lose more from tariffs than U.S. producers gain. D. U.S. producers gain more from tariffs than U.S. consumers lose.
Suppose a country operates on its production possibility frontier when it produces 1000 books and 1000 tables. The combination of ________ reflects ________
A) 500 books and 1000 tables; an inefficient but attainable point B) 1000 books and 500 tables; an efficient point C) 1000 books and 1000 tables; a free lunch D) 500 books and 500 tables; an attainable and efficient point E) 1000 books and 1500 tables; a free lunch
A key to gaining cooperative behavior in a repeated game is:
A. there must be a definitive end to the game. B. that the game must be repeated indefinitely. C. the players must commit to always acting in their own self-interest. D. at least one player must have a dominant strategy.