In short-run equilibrium for a competitive firm:
A. price will not equal marginal revenue.
B. marginal revenue will be greater than marginal cost.
C. price will equal marginal cost.
D. price will be greater than marginal cost.
Answer: C
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If the government runs a budget deficit, then
A) national saving is negative. B) household but not business saving must pay for the deficit. C) part of household and business saving finances the deficit. D) national saving cannot fund investment.
What is the difference between nominal and real economic variables? Why do economists tend to concentrate on changes in real magnitudes?
What will be an ideal response?
A beggar-thy-neighbor policy is
A. The imposition of import barriers for the purpose of curbing inflation. B. An attempt by a poor country to get more foreign aid and assistance. C. The imposition of trade barriers to increase domestic employment. D. The imposition of trade barriers for the purpose of expanding exports.
Sarah's Soothing Diapers, Inc and Orville's Odorless Diapers, Inc are duopolists, who have agreed to collude. Orville has decided that he will comply with the collusive agreement as long as Sarah cooperated in the previous period
But if Sarah cheated in the previous period, Orville will punish Sarah by cheating in the current period. Orville's strategy is referred to as a A) Nash strategy. B) tit-for-tat strategy. C) trigger strategy. D) monkey-see, monkey-do strategy.