A positive temporary supply side shock will:
A. increase the level of potential output in the long run.
B. decrease the price level in the long run.
C. increase the price level in the long run.
D. have no effect in the long run.
Answer: D
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One assumption that economists often make about people is that they are ________
A) risk-neutral B) risk-averse C) risk-seeking D) rent-seekers
A single-price monopolist
A) sets its price where its demand is inelastic. B) can always increase its profits by increasing its price. C) has its marginal revenue less than its price. D) is guaranteed an economic profit.
Which of the following is true for the game in Scenario 13.3?
A) Moto's dominant strategy is the CD changer. B) Moto's dominant strategy is the free maintenance. C) Zport's dominant strategy is the low-profile tires. D) Zport's dominant strategy is the sun roof. E) Neither company has a dominant strategy.
Which of the following is correct?
A. There is no relationship between MP and MC. B. When AP is rising MC is falling, and when AP is falling MC is rising. C. When MP is rising MC is rising, and when MP is falling MC is falling. D. When MP is rising MC is falling, and when MP is falling MC is rising.