The incentive to charge a low price even though it leads to lower profits in Figure 8.9 is an example of:
A. the duopolists' dilemma.
B. tying products.
C. scarcity and choice.
D. the economic problem.
Answer: A
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An increase in the quantity of capital increases ________ and increase in the full-employment quantity of labor increases ________
A) the SAS and the LAS; only the SAS B) the SAS and the LAS; only the LAS C) the SAS and the LAS; the SAS and the LAS D) only the LAS; the SAS and the LAS
If two countries produce both wheat and sugar and one country has the comparative advantage in producing wheat than the other country must have the absolute advantage producing sugar
a. True b. False Indicate whether the statement is true or false
In this graph, why does point B move up to point C?
a. In the short run, the increase in money supply leads to a higher price level, which causes the interest rate to lower.
b. In the long run, the increase in money supply leads to a lower price level, which causes the interest rate to rise.
c. In the short run, the increase in money supply has little effect on price level, which causes the interest rate to lower.
d. In the long run, the increase in money supply leads to a higher price level, which causes the interest rate to rise.
Which of the following is one of the main features of our modern economy that helps ensure against a repeat performance of the Great Depression?
A. Transfer payments B. Outsourcing C. Multiplier D. Personal income tax