The value of output was $100 billion in Northland and $200 billion in Southland. The population of Northland was 50 million and the population of Southland was 30 million. There were 30 million employed workers in Northland and 20 million employed workers in Southland.
A. Northland; the same in both countries
B. Northland; higher in Northland
C. Southland; higher in Southland
D. Southland; the same in both countries
Answer: C
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Assuming that one dollar trades for 50 rupees, what is the dollar cost of 750 rupees?
A) $50 B) $75 C) $5 D) $15
If all consumers are willing to buy insurance at the zero-profit pooling price, there cannot be a separating equilibrium.
Answer the following statement true (T) or false (F)
Which of the following is a function that is performed by the Federal Reserve?
a) To clear checks. b) To keep inflation high. c) To keep employment high. d) To keep interest rates low.
Refer to the information provided in Table 14.5 below to answer the question that follows. Table 14.5B's Strategy ?AdvertiseDon't Advertise??A's profit $200 millionA's profit $400 million?AdvertiseB's profit $200 millionB's profit $100 millionA's Strategy????Don'tA's profit $100 millionA's profit $150 million?AdvertiseB's profit $400 millionB's profit $150 millionRefer to Table 14.5. If both firms follow a maximin strategy, the equilibrium in the game is
A. (Don't Advertise, Advertise). B. (Advertise, Don't Advertise). C. (Advertise, Advertise). D. (Don't Advertise, Don't Advertise).