The law of demand describes the:
A. inverse relationship between price and quantity demanded.
B. direct relationship between price and quantity demanded.
C. inverse relationship between income and quantity demanded.
D. direct relationship between income and quantity demanded.
A. inverse relationship between price and quantity demanded.
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In Macroland, autonomous consumption equals 100, the marginal propensity to consume equals 0.75, net taxes are fixed at 40, investment is fixed at 50, government purchases are fixed at 150, and net exports are fixed at 20. Equilibrium output in this economy equals
A. $1,160. B. $1,440. C. $1,000. D. $1,280.
Government actions can cause a
A) shift in the supply curve. B) shift in the demand curve. C) reaction from firms in other countries. D) All of the above.
A dominant strategy
A. results in the best outcome for a player if other players also play the same strategy. B. is the best strategy for a player, regardless of the strategy chosen by other players. C. is present in every game. D. is identical to a Nash equilibrium.
In monopolistic competition, firms can have some market power
A. by producing differentiated products. B. because of barriers to entry into the industry. C. because of barriers to exit from the industry. D. by virtue of size alone.