In which instances will total revenues decline?
A. Price rises and Ed equals 2.47.
B. Price rises and Ed equals 0.41.
C. Price rises and demand is of unit elasticity.
D. Price falls and demand is elastic.
Answer: A
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A. Moral hazard B. Adverse selection C. Biased selection
When one player has to make a decision before the other player, the situation is called a:
A. commitment game. B. simultaneous game. C. sequential game. D. prisoner's dilemma.
When actual output increases the potential output, _____. a. more resources become unemployed. b. prices remain constant
c. prices tend to increase. d. nominal GDP decreases. e. resource prices decrease.
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a. True b. False Indicate whether the statement is true or false