In a demand-pull inflation, if the Fed stops expanding the quantity of money,
A) a cost-push inflation will occur.
B) government expenditure will cause the demand-pull inflation to continue.
C) a deflation will occur.
D) the demand-pull inflation ends.
E) None of the above answers is correct.
D
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Suppose that two countries share identical levels of total factor productivity, identical labor force growth rates and identical savings rates. According to the Solow model
A) the country with the greater initial level of output per worker will grow more rapidly than the country with the smaller initial level of output per worker. B) the country with the smaller initial level of output per worker will grow more rapidly than the country with the greater initial level of output per worker. C) both countries will have the same growth rates of output per worker, even if they start out with different levels of output per worker. D) if both countries start out with different levels of income per worker, both countries may have different growth rates of output per worker, but we cannot be certain which country will have the higher growth rate of output per worker.
Suppose the market demand curve for a Bertrand duopoly is downward sloping. What happens to the Nash equilibrium price and market quantity if the constant marginal cost declines?
A) Price and quantity decline B) Price increases and quantity declines C) Price decreases and quantity increases D) Price and quantity increase
The role of the market for renewable resources is to determine a price at which the quantity of a resource is just sufficient to enable the resource to renew itself at a rate that best satisfies society's wants
a. True b. False Indicate whether the statement is true or false
The opportunity cost of a particular activity is the sum of the benefits that could have been received from all foregone activities
a. True b. False