To eliminate an inflationary gap, the aggregate demand curve should
a. shift outward.
b. become vertical.
c. become horizontal.
d. shift inward.
d
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If the price of a barrel of oil is $100 this year and the interest rate is 10 percent, then according to the Hotelling Principle the price next year is expected to be ________ per barrel
A) $90 B) $110 C) $100 D) None of the above is correct.
Under low-cost contracting like that between beekeepers and farmers, the agreement between the two parties is not self-enforcing because:
a. the terms of contract are laid down by a third party. b. the initial distribution of rights between the two parties is unequal. c. services and payments take place over a span of time, and either might choose to default on his obligations at some point. d. the contract distributes gross revenue between the two parties unequally.
Refer to Figure 12.7. If Barney got to move first instead of Fred, the path of the game would be:
A. Barney stays out and Fred chooses a large quantity. B. Barney enters and Fred chooses a large quantity. C. Barney stays out and Fred chooses a small quantity. D. Barney enters and Fred chooses a small quantity.
The efficient level of pollution abatement is where:
A. the marginal benefit of abatement is greater than its marginal cost. B. the marginal benefit of abatement is less than its marginal cost. C. the marginal benefit of abatement is equal to its marginal cost. D. None of these