Successful advertising:
a. generally causes a firm’s costs to fall.
b. generally causes industry costs to fall.
c. normally causes demand for the firm to shift right.
d. normally causes industry demand to shift left.
e. normally causes consumers to buy things for which they have no use
Answer: c. normally causes demand for the firm to shift right.
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Suppose Jordan and Lee are trying to decide what to do on a Friday. Jordan would prefer to see a comedy while Lee would prefer to see a documentary. One documentary and one comedy are showing at the local cinema. The payoffs they receive from seeing the films either together or separately are shown in the payoff matrix below. Both Jordan and Lee know the information contained in the payoff matrix. They purchase their tickets simultaneously, ignorant of the other's choice. 
Which of the following statements is true?
A. Both the lower-left and upper right cells are Nash equilibria. B. The upper-right cell is the only Nash equilibrium. C. The lower-left cell is the only Nash equilibrium. D. Both the upper-left and lower-right cells are Nash equilibria.
The demand for microwaves in a certain country is given by: D = 8,000-30P, where P is the price of a microwave. Supply by domestic microwave producers is: S = 4,000 + 10P. If this economy opens to trade while the world price of a microwave is $50, the domestic quantity demanded will be ________ and quantity supplied will be ________.
A. 6,500; 3,000 B. 5,000; 5,000 C. 6,000; 4,000 D. 6,500; 4,500
Based on the above table, the labor force participation rate is
A) 71.4 percent. B) 82 percent. C) 53.6 percent. D) 75 percent. E) 64.3 percent.
A crucial feature of early Keynesian business cycle theory is that real wages vary ________, which in fact ________ clearly emerge from U.S. data on wages over time
A) countercyclically, does not B) countercyclically, does C) procyclically, does not D) procyclically, does