Consider the game tree in Figure 12.8. If both stores' payoffs in the bottom rectangle were $600 instead of $300, the outcome of the game will be that:
A. both stores choose to advertise.
B. both stores choose not to advertise.
C. Store A chooses to advertise but Store B chooses not to advertise.
D. Store B chooses to advertise but Store A chooses not to advertise.
Answer: B
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Which of the following statements is true?
A) Normative statements depend on personal preferences. B) Normative economic statements can be confirmed or disproven. C) Positive economics recommends what people ought to do. D) Positive economics deals with issues that are subjective.
Macroeconomic forces are a powerful explanation for changes in the size of the poverty population
Indicate whether the statement is true or false
Economists oppose limiting economic growth possibilities because such limits would inevitably involve
a. some expansion of private sector production. b. an increase in government spending. c. some form of mandatory controls on economic activity. d. mandated balanced federal budgets.
Refer to the information provided in Figure 6.2 below to answer the question(s) that follow.
Figure 6.2Refer to Figure 6.2. Assume Mr. Lingle's budget constraint is AC. If the price of a beer is $3, the price of a gardenburger is
A. $1.50. B. 3.00. C. $6.00. D. $12.00.