Refer to the following graph. Which of the following reflects government expansionary fiscal or monetary policy which would fail to increase real income?
a. An increase in aggregate demand from AD1 to AD2.
b. An increase in aggregate demand from AD2 to AD3.
c. An increase in aggregate demand from AD3 to AD4.
d. An increase in aggregate demand from AD4 to AD5.
d. An increase in aggregate demand from AD4 to AD5.
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An antitrust agency is identifying the product market for Good X and determines that Good X and Good Y have a cross-price elasticity of 0.04. As a result of the cross-price elasticity, the antitrust agency is likely to ________ Good Y from Good X's product market as the products ________ compete as close substitutes.
A) include; do B) exclude; do C) include; do not D) exclude; do not
Suppose an economy produces milk and honey, and milk is plotted along the horizontal axis of the production possibilities frontier
If the production in the economy is centrally planned (and not market oriented) so that the MRS for the current production level is 3 but the MRT is 2, then there will be an excess ________ for milk and an excess ________ for honey. A) demand, supply B) demand, demand C) supply, demand D) supply, supply E) The market is in equilibrium, and there are no imbalances in supply or demand.
Game theory is a tool to analyze
a. the pricing strategy in perfect competition. b. the price set by a monopoly. c. independence among firms. d. mutual interdependence among firms.
Suppose a Russian economist told you that since the fall of communism, the Russian income distribution has shifted to perfect inequality, you would know then (no need to calculate), that the Russian Gini coefficient is
a. 1 b. 0 c. 10 d. -1 e. infinite