Which of the following is a characteristic of perfect competition?
a. substantial barriers to entry
b. differentiated products
c. few sellers
d. none of the above
d
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Refer to Table 4-1. The table above lists the highest prices three consumers, Tom, Dick, and Harriet, are willing to pay for a short-sleeved polo shirt. If the price of the shirts falls from $28 to $20
A) Harriet will receive more consumer surplus than Tom or Dick. B) Tom will buy two shirts; Dick and Harriet will each buy one shirt. C) consumer surplus increases from $14 to $35. D) consumer surplus will increase from $70 to $95.
Which statement is a good argument in support of policy activism?
A) Policy lags are generally longer than the time it takes the self-correcting mechanism to work. B) Activist policies help to ensure stability of the real interest rate. C) Well-considered policies can assist the economy's self-correcting mechanism, thus reducing the variability of inflation and unemployment. D) all of the above E) none of the above
Which of the following statements is (are) true of the prisoners' dilemma? (i) Rational self-interest leads neither party to confess. (ii) Cooperation between the prisoners is difficult to maintain. (iii) Cooperation between the prisoners is individually rational
a. (ii) only b. (ii) and (iii) c. (i) and (iii) d. (i), (ii), and (iii)
As one of the New Deal programs, the WPA was a government agency that
A. increased employment through construction projects. B. regulated the banking industry. C. regulated the securities industry. D. regulated the trucking and interstate commerce industries.