What strategic advantage compared to a Cournot Oligopoly results in the Stackelberg outcome?
A) the ability to move first
B) the ability to set price
C) the ability to set quantity
D) the ability to make independent decisions by the Stackelberg leader
A
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Subsidies are most likely to:
A. leave total economic surplus unchanged, but transfer surplus from producers to consumers. B. reduce total economic surplus. C. increase total economic surplus. D. reduce consumer surplus.
The notion that in a world with n markets, if n - 1 are in equilibrium, so must the nth, is known as
A) the uncertainty principle. B) the first law of international trade. C) Walras Law. D) Friedman Law.
Increased United States military expenditures and action in response to the terrorist attacks of September 11, 2001 suggest that military officials in the United States _____
a. could not wait to go to war b. view the War on Terror as a negative externality c. believe that military expenditures can act as a deterrent d. are incompetent
People will choose to specialize and trade if they can acquire the goods they want:
A. from a capitalistic system of exchange. B. from someone who is willing to trade with them. C. at a lower cost than it would cost them to make the goods themselves. D. at a higher cost than it would cost them to make the goods themselves.