Given the scenario described, if the market price of hammers decreased from $17 to $12:
Assume there are three hardware stores, each willing to sell one standard model hammer in a given time period. House Depot can offer their hammer for a minimum of $7. Lace Hardware can offer the hammer for a minimum of $10. Bob's Hardware store can offer the hammer at a minimum price of $13.
A. producer participation in the market would increase.
B. producer participation in the market would decrease.
C. producer participation in the market would not be affected.
D. total producer surplus would remain unchanged.
B. producer participation in the market would decrease.
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Endogenous variables in an economic model are those that the model takes as given and does not try to explain.
a. true b. false
One important reason why the United States government is not likely to go bankrupt even with a large public debt is that it has:
A. The power to print money to finance the debt B. A strong military to protect it from creditors C. The capacity to pay off its outstanding debt with gold D. The ability to decrease interest rates and increase investment spending
Which of the following represents an income flow in the circular flow of domestic output and national income?
A. Net exports B. Investment expenditures C. Government purchases D. Corporate profits
Which of the following statements is false?
Game Matrix IV
The following questions refer to the game matrix below.
Player A can play the strategies UP and DOWN and Player B can play the strategies LEFT and RIGHT.
a. Player A has a dominant strategy.
b. Player B has a dominant strategy.
c. This is a Prisoners' Dilemma.
d. This game has no Nash Equilibrium.