When a cartel breaks down and its members start cheating, the behavior in the industry becomes a
A) noncooperative game.
B) zero-sum game.
C) high stakes game.
D) positive sum game.
A
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Using the real business cycle theory, explain the effects of an adverse technological shock on the labor market and on the output market. Illustrate graphically how the adverse technology shock affects labor demand and supply
Why is this theory controversial?
In the presence of the free-rider problem, the market will provide ________ of a good or service.
A. more than the socially optimal quantity B. either more than or less than the socially optimal quantity C. the socially optimal quantity D. less than the socially optimal quantity
If an investor had a $200,000 long-term capital gain on a $50,000 investment from 1984 to 2010, her real annualized rate of return was most likely
A. equal to the real rate of inflation. B. between 11 and 20 percent. C. between 0 and 10 percent. D. negative.
If a government tax has as its purpose the raising of revenue, it would be best to place the tax on a product which:
A. is a non-essential. B. has a highly elastic demand. C. has many good substitutes. D. has a highly inelastic demand.