Refer to Figure 3-7. Assume that the graphs in this figure represent the demand and supply curves for Fruitopia, a soft drink
Which panel describes what happens in the market for Fruitopia when the price of Snapple, a substitute product, decreases?
A) Panel (a) B) Panel (b) C) Panel (c) D) Panel (d)
D
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Economic theory is a necessity, not a luxury. This statement is true because theory
A. always leads to practical and useful policy. B. can prevent depressions in the economy. C. substitutes for vast amounts of data. D. provides a structure for organizing and analyzing data. E. always leads to accurate predictions.
Refer to the payoff matrix below. In reference to the Nash equilibrium/equilibria in this game, which of the following is true?
Healthy Snacks and Best Treats are two firms competing in the health food snacks market. Both are considering introducing a new health food snack made purely of dried power fruits. The payoff matrix shows their net economic profit in millions for the different strategies.
A) There is one Nash equilibrium in this game.
B) There are three Nash equilibria in this game.
C) There are no Nash equilibria in this game.
D) There are two Nash equilibria in this game.
Which of the following is an essential component of the ladder of opportunity?
a. Effective education system b. Safety net policies and programs c. Consistent redistribution efforts d. High social rates of return
All of the following are determinants of net exports except
A. domestic and foreign incomes. B. relative price levels. C. domestic and foreign trade policies. D. producers' expectations about future prices.