Along a supply curve, product price and producer surplus are inversely related.
a. true
b. false
Answer: b. false
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Economists have not found a way to predict when recessions will begin and end
Indicate whether the statement is true or false
If demand increases while supply simultaneously decreases, then the equilibrium quantity
A) always increases. B) always decreases. C) can never change. D) none of the above
In most state-run lotteries,
a. the winner receives a single lump-sum payment b. the present value of the winnings is less than the number of dollars won c. the present value of the winnings exceeds the number of dollars won d. winners are paid the present value of the total amount won e. winners are paid only in the distant future
In the cigarette industry either R. J. Reynolds or Phillip Morris, for a time, raised prices twice a year by about 50 cents per carton. The other firms in the industry raised their prices by the same amount. Economists call this
a. predatory pricing. b. a price war. c. price leadership. d. sales maximization.