The equation of exchange
A. is GDP = C + I + G + Xn.
B. never balances.
C. states that if M rises by a certain percentage, P must rise by that same percentage.
D. is MV = PQ.
D. is MV = PQ.
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Suppose the price elasticity of supply for minivans is 0.3 in the short run and 1.2 in the long run. If an increase in the demand for minivans causes the price of minivans to increase by 5%, then the quantity supplied of minivans will increase by about
a. 1.5% in the short run and 6% in the long run. b. 6% in the short run and 1.5% in the long run. c. 16.7% in the short run and 4.2% in the long run. d. 4.2% in the short run and 16.7% in the long run.
In the prisoners' dilemma game, confessing is a dominant strategy for each of the two prisoners
a. True b. False Indicate whether the statement is true or false
A perfectly competitive firm maximizes its profits using what rule?
a. P = ATC b. MR = ATC c. Q = MC d. P = MC e. MR = AVC
Bobby makes a New Year's resolution to lose weight. On January 3rd, he decides to go to Ben amp; Jerry's for ice cream instead of going to the gym. Using the concept of revealed preference, economists would most likely conclude that Bobby:
A. has changed his preferences. B. is not a rational individual. C. has no choice over the actions he takes. D. actually gains more utility from ice cream than working out.