Consider Figure 8.9. Choosing a low price is:
A. a dominant strategy for David but not for Becky.
B. a dominant strategy for Becky but not for David.
C. a dominant strategy for both David and Becky.
D. not a dominant strategy for either David or Becky.
Answer: C
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To maximize profits, firms hire labor as long as
A) each additional hour hired produces more additional output than the real wage rate. B) the total hours hired produces more additional output than the real wage rate. C) each additional hour hired produces more additional output than the nominal wage rate. D) the quantity of labor supplied increases as the real wage rate increases. E) workers continue to supply labor to the firm.
The "underground economy" is also referred to as
A) the informal sector. B) the halfway economy. C) the net domestic product economy. D) the formal sector.
If private investment increased by $50 billion while GDP remained the same, which of the following could have occurred, all else being the same?
a. Consumption spending decreased by $50 billion b. Exports increased by $50 billion c. Imports decreased by $50 billion d. Net exports increased by $50 billion e. Government spending increased by $50 billion
Selling a good at a lower price in a foreign country than in the home country is an example of
a. an export subsidy. b. dumping. c. an export barrier. d. None of these.