Game theory:
A. is the analysis of how people (or firms) behave in strategic situations.
B. is best suited for analyzing purely competitive markets.
C. reveals that mergers between rival firms are self-defeating.
D. reveals that price-fixing among firms reduces profits.
Answer: A
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A consumer has $50 to spend. He has to decide between buying two goods: magazines priced at $5 each and DVDs priced at $10 each. Which of the following combinations of the two goods will exactly satisfy his budget constraint?
A) 3 magazines and 4 DVDs B) 2 magazines and 4 DVDs C) 6 magazines and 1 DVD D) 2 magazines and 2 DVDs
The long-run supply curve for a firm in a perfectly competitive industry is:
A) negatively sloped. B) positively sloped. C) vertical. D) horizontal.
When did intellectual property rights become part of trade agreements?
What will be an ideal response?
Answer the following statements true (T) or false (F)
1. A decrease in investment can cause a decrease in the price level without affecting total output. 2. The level of total output and the price level can be affected by changes in consumption. 3. Total output and the price level may decline simultaneously. 4. If inventories are accumulating, income must be greater than spending. 5. A situation where exports exceed imports can cause total output to increase.