Which of the following is most likely to lead to an increase of 1% in the nominal demand for money?
A. An increase in real income of 0.5%
B. A decline of 1% in the price level
C. An increase of 1% in the price level
D. A decrease in real income of 0.5%
Answer: C
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Which one of the following is a way to get out of a repeated Prisoner's Dilemma Nash Equilibrium?
a. Make sure that your competitor clearly understands your actions and intentions b. Make sure that your competitor keeps guessing about your actions and intentions c. Make sure you keep your actions and intentions ambiguous d. All of the above
Allocative efficienty exist when firms produce the output most preferred by consumers
a. True b. False
According to the law of comparative advantage, both individuals and nations will be able to produce a larger joint output if each productive activity is undertaken by
a. the high opportunity cost producer. b. the low opportunity cost producer. c. the producer who is able to hire workers at the lowest wage. d. the party that can complete the productive activity most rapidly.
Which factor could contribute to a firm experiencing economies of scale?
A. The law of diminishing marginal returns B. Deterioration of information and control within a firm C. A rising long-run average total cost D. Productivity gains from more specialized labor