Refer to Scenario 2.2. What is the effect of the BBP on the equilibrium price of dental care?
A) It unambiguously increases.
B) It unambiguously decreases.
C) It increases only if supply shifts more than demand.
D) It increases only if demand shifts more than supply.
A
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Refer to Figure 3.2. Betty's dominant strategy is
A) North. B) West. C) East. D) Betty has no dominant strategy.
In the 1700s, Reverend Thomas Malthus predicted that:
a. per capita economic growth would not change very much since humans were already content with their standards of living. b. per capita economic growth would tend to rise as modern birth control techniques caused the rate of population growth to decline. c. per capita economic growth would eventually become negative since population growth would tend to outstrip production. d. per capita economic growth would tend to rise in the future because technological advances in production would outpace population growth.
The marginal propensity to consume is always
a. greater than 1 b. between 0 and 1 c. less than 0 d. between 0 and -1 e. between 0 and 0.6
Which set of actions will help three oligopolistic firms to achieve joint profit maximization?
a. They decide not to cooperate, and each pursues its individual self-interest. b. They decide to collude and to trust each other not to defect from the agreement. c. They sign a cartel agreement, and then each firm cheats on it. d. They choose a dominant firm, and then they take turns being the price leader.