Other things the same, an unexpected fall in the price level results in some firms having
a. lower than desired prices, which increases their sales.
b. lower than desired prices, which depresses their sales.
c. higher than desired prices, which increases their sales.
d. higher than desired prices, which depresses their sales.
d
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Which of the following is true of the dominant strategy equilibrium?
A) A dominant strategy equilibrium always leads to the best outcome for each player. B) A dominant strategy equilibrium cannot be a Nash equilibrium. C) A dominant strategy equilibrium is a Nash equilibrium if each player chooses a strategy that is a best response to the strategies of others. D) A dominant strategy equilibrium occurs if the sum of the players' payoff is zero.
In the Keynesian framework, as long as output is ________ the equilibrium level, unplanned inventory investment will remain ________, firms will continue to raise production, and output will continue to rise
A) below; negative B) above; negative C) below; positive D) above; positive
Which of the following would not be considered a negative externality?
a. Smelter, Inc. creates steel and pollution. b. Your friend buys a new puppy that barks every night. c. You have an adverse reaction to a medication your doctor prescribed for you. d. Your neighbor plays loud music that you dislike through stereo speakers set up on his deck.
While waiting in line to buy a cheeseburger for $2 and a drink for 75 cents, Aaron notices that the restaurant has a value meal containing a cheeseburger, drink, and French fries for $3. For Aaron, the marginal cost of purchasing the French fries:
A. would be zero. B. would be 25 cents. C. would be 50 cents. D. cannot be determined because the information about the price of the French fries is not provided.