In the game depicted below, firms 1 and 2 must independently decide whether to charge high or low prices.Firm 1Firm 2??High PriceLow Price?High Price(10,10)(5,-5)?Low Price(-5,5)(0,0)If player 1 charges a high price when player 2 charges a low price, then player 2 earns:
A. ?5.
B. 0.
C. 5.
D. 10.
Answer: A
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Answer the following statements true (T) or false (F)
1. Command-and-control regulation is inflexible. It usually requires the same standard for all polluters, and often the same pollution-control technology as well. 2. If the pollution tax applies to every source of pollution, then no special favoritism or loopholes are created for politically well-connected producers. 3. Economists value a human life on the basis of studies of the value that people contribute to the economy of their nation. 4. No nation by itself can reduce emissions of carbon dioxide and other gases enough to solve the problem of global warming—not without the cooperation of other nations.
If the price level decreases, then the aggregate expenditures schedule will shift and this translates into a ________.
A. shift in aggregate demand to the right B. shift in aggregate demand to the left C. movement up along the aggregate demand curve D. movement down along the aggregate demand curve
The United States balance of payments accounts
a. records all earnings from the foreign activities of U.S. residents. b. records all expenditures of U.S. citizens' abroad. c. records all earnings from the foreign activities of foreign governments. d. Both a and b e. All of the above
A firm that practices resale price maintenance
a. has incentive to reduce competition between its retailers. Resale price maintenance can lead to more service. b. has incentive to reduce competition between its retailers. Resale price maintenance cannot lead to more service. c. has no incentive to reduce competition between its retailers. Resale price maintenance can lead to more service. d. has no incentive to reduce competition between its retailers. Resale price maintenance cannot lead to more service.