Suppose pigs (P) can be fed corn-based feed (C) or soybean-based feed (S) such that the production function is P = 2C + 5S. If the price of corn feed is $4 and corn feed is on the horizontal axis, and the price of soybean feed is $5 and soybean feed lies on the vertical axis, what is expansion path?
a. C =5S/2
b. S =2C/5
c. the horizontal axis
d. the vertical axis
d
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There are two can companies, American and National, which have entered into a collusive agreement. The payoff matrix of economic profits is above. If both firms cheat on the collusive agreement, what amount of economic profit is made by American?
A) $0 B) $3,000 C) $4,000 D) -$2,000
If the government announces a big tax cut, which of the following combinations of events would be most likely to occur?
a. An upward shift of the aggregate expenditure line, a rightward shift of the money demand curve, and a rightward shift of the aggregate demand curve b. A downward shift of the aggregate expenditure line, a leftward shift of the money demand curve, and a leftward shift of the aggregate demand curve c. An upward shift of the aggregate expenditure line, a leftward shift of the money demand curve, and a rightward shift of the aggregate demand curve d. A downward shift of the aggregate expenditure line, a rightward shift of the money demand curve, and a rightward shift of the aggregate demand curve e. An upward shift of the aggregate expenditure line, a rightward shift of the money demand curve, and a leftward shift of the aggregate demand curve.
Which of the following was a lasting effect of the OPEC embargo in the 1970s on the U.S. economy?
(A) Higher gasoline prices (B) Reduced use of petroleum (C) Reduced taxes (D) Lower interest rates
You would expect the price of a share of stock to fall if
A. the expected dividend of the stock rose. B. the price level were rising. C. the economy went into recession. D. all of the above.