Suppose that Jack promises that if Jill chooses the high price, he will too. Jack has an incentive to cheat on the agreement.
Answer the following statement true (T) or false (F)
True
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In the long run, what level of economic profits can a monopolistic competitor expect to receive?
A) positive B) zero C) negative D) either negative or positive, depending on the demand for its product and its costs
The AD curve shifts to the right when
a. the Fed alters its fiscal policy rules b. any economic shock disrupts the economy c. the AS curve does not shift d. new trade legislation is passed e. positive demand shocks occur
Americans buying Japanese cars create a
A) demand for U.S. dollars and supply of Japanese yen. B) demand for both U.S. dollars and Japanese yen. C) supply of U.S. dollars and demand for Japanese yen. D) supply of both U.S. dollars and Japanese yen.
Refer to Scenario 2. Once the full impact of the Fed's open market sale works its way through the banking system, what is the maximum change on the money supply as a result of these two events?
A) Money supply rises by $5,000. B) Money supply rises by $500,000. C) Money supply falls by $50,000. D) Money supply falls by $500,000.