Mutual interdependence means that:
a. each firm faces a perfectly elastic demand curve
b. each firm faces a perfectly inelastic demand curve.
c. firms choose price and output simultaneously.
d. firms must anticipate the possible reaction of rivals to their own economic behavior.
d
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The initial supply and demand curves for a good are illustrated in the above figure. If there is a rise in the price of a factor of production used to produce the good, then the new equilibrium price
A) is less than $6. B) is $6. C) is more than $6. D) could be less than, equal to, or more than $6.
Prior to 1980, member banks left the Federal Reserve System due to
A) the high cost of discount loans. B) the high cost of required reserves. C) a desire to avoid interest rate regulations. D) a desire to avoid credit controls.
Which of the following groups were losers after the European Union's imposition of an antidumping duty on shoes imported from China?
a. European consumers and European shoe manufacturers b. Chinese consumers and Chinese shoe manufacturers c. Chinese consumers and European shoe manufacturers d. European consumers and Chinese shoe manufacturers
Suppose the relationship between wage, years of education (educ), years of experience (exper), and participation in a job training program (train) is modeled as: log (
) = 
+
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+ 
+ 
. Which of the following is the most accurate interpretation of the coefficient, 
?
A. Holding education and experience constant, participating in the training program increases the wage by $ 
.
B. Holding education and experience constant, participating in the training program is predicted to increase the wage by 
C. Participating in the training program is predicted to increase the wage by 
% .
D. Participating in the training program increases the wage by $
.