Consider Figure 12.3. If Becky and David could coordinate their decisions then:
A. they would each earn profits of 100.
B. they would both choose to charge a low price and earn profits of 90 each.
C. they would both choose to charge a high price and earn profits of 90 each.
D. they would both choose to charge a high price and earn profits of 70 each.
Answer: C
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International economics ________ use the same fundamental methods of analysis as other branches of economics, because ________
A) does not, the level of complexity of international issues is unique B) does not, the interactions associated with international economic relations is highly mathematical C) does not, international economics takes a different perspective on economic issues D) does not, international economic policy requires cooperation with other countries E) does, the motives and behavior of individuals are the same in international trade as they are in domestic transactions
Which of the following industries has a marginal cost that is close to zero?
a. automobile b. aircraft c. software d. furniture
When a government increases an effective price ceiling for a product
A) the shortage in the market will be reduced. B) the shortage in the market will be increased. C) the surplus in the market will be reduced. D) the surplus in the market will increase.
Unintended changes in inventories:
A. cause the economy to move away from the equilibrium GDP. B. are treated as components of consumption. C. bring actual investment and saving into equality only at the equilibrium level of GDP. D. bring actual investment and saving into equality at all levels of GDP.