Barbie is deciding whether to play soccer or go swimming over the next hour. She decides to swim. Economists would conclude that Barbie:
A. is revealing a preference for swimming over soccer.
B. is more skilled at swimming than playing soccer.
C. was unable to play soccer at that time.
D. will get less utility from swimming during the next hour than playing soccer.
Answer: A
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Natural oligopoly is a situation where
A) the level of demand can support only a few firms. B) there is only one firm. C) there are only two firms. D) there are legal barriers to entry.
How would government's role differ between the balanced and unbalanced growth models?
What will be an ideal response?
Suppose that a perfectly competitive market is in equilibrium, and then market supply decreases. Which of the following would happen?
a. both producer and consumer surplus would increase b. both producer and consumer surplus would decrease c. producer surplus would decrease and consumer surplus would increase d. producer surplus would increase and consumer surplus would decrease e. producer and consumer surplus would remain unchanged
A lower marginal propensity to consume is most likely to result in a(n): a. flatter aggregate expenditure line
b. steeper aggregate expenditure line. c. upward shift of the aggregate expenditure line. d. downward shift of the aggregate expenditure line.