As a result of war many of the factories in country 1 are destroyed and many of its people are killed. As a result, the country's
What will be an ideal response?
PPF after the war has probably shifted to the left compared to its PPF prior to the war.
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Even if your college degree is irrelevant to an employer's needs, your high GPA might still get you the job because
A) the firm is not a profit maximizer. B) your GPA sends a signal about your quality as a worker. C) the firm will most likely make an adverse selection. D) the high GPA eliminates the possibility of moral hazard.
Suppose the demand curve for a product is represented by a typical downward-sloping curve. Now suppose the demand for this product increases. Which of the following statements accurately predicts the resulting increase in price?
A) The more elastic the supply curve, the greater the price increase. B) The increase in price is not affected by the elasticity of the supply curve. C) The more elastic the supply curve, the smaller the price increase. D) There will be no increase in price if the supply curve is perfectly inelastic.
A noncooperative game is
A) companies colluding in order to make higher than competitive rates of return. B) the manner in which one oligopolist reacts to a change in price made by another oligopolist in the industry. C) a game in which firms will not negotiate in any way. D) when plans made by firms are known as game strategies.
The market demand function for ice cream is Qd = 10 - 2P and the market supply function for ice cream is Qs = 4P - 2, where both quantities are measured in millions of gallons per year. What is the consumer surplus at the competitive market equilibrium?
A. $4.5 million B. $9 million C. $13.5 million D. $18 million