If you advertise and your rival advertises, you each will earn $5 million in profits. If neither of you advertises, you will each earn $10 million in profits. However, if one of you advertises and the other does not, the firm that advertises will earn $15 million and the non-advertising firm will earn $1 million. Which of the following is true?
A. A secure strategy for firm A is to not advertise.
B. Firm A does not have a secure strategy.
C. A secure strategy for firm B is to not advertise.
D. None of the answers is correct.
Answer: D
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The U.S. civilian labor force does not include
a. the self-employed. b. members of Congress. c. members of the armed services. d. lawyers and doctors.
Refer to the accompanying figure. Suppose a law is passed requiring restaurants to charge no more than $25 per meal. This law would:
A. increase producer surplus. B. have no effect on producer surplus. C. decrease producer surplus. D. have an ambiguous effect on producer surplus.
The marginal revenue product of labor curve will always shift to the left if
A. the price of capital falls. B. product demand decreases and product price decreases. C. the wage rate falls. D. product demand increases and product price increases.
Refer to the information. This nation is incurring:
Answer the question on the basis of the following information for a private open economy. The letters Y, C, I g , X, and M stand for GDP, consumption, gross investment,exports, and imports respectively. Figures are in billions of dollars.
A. a trade surplus.
B. balance in its international trade.
C. a trade deficit.
D. unemployment.