By invoking the assumption of ceteris paribus, economists
A. isolate the impact of one single variable while holding all other variables constant.
B. consider the impact of all relevant factors.
C. hold all variables constant when analyzing a model.
D. exclude irrelevant detail when analyzing a model.
Answer: A
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Refer to Figure 4-10. Suppose that instead of a price ceiling, the government imposed a price floor of R1. What is the area representing producer surplus after the imposition of the price floor?
A) A B) B + D + F C) B + C + D + E + F D) C + E
Because two percent of the largest farms grow half of all of the grain in the United States, the grain industry is technically classified as an oligopoly
Indicate whether the statement is true or false
____ is one in which exactly the amount one competitor gains must be lost by other competitors
a. Nash equilibrium b. Prisoner's dilemma c. A win-win situation d. A zero-sum game
The "fiscal multiplier" is the ripple effect of subsequent:
A. increases in spending following an initial increase in government spending. B. increase rate changes following a change to the federal funds rate. C. increases in lending following an initial increase in bank reserves. D. private-sector layoffs following an initial layoff in the public sector.