If tastes for foreign goods and services go up, then we would expect imports to:
A. increase.
B. decrease.
C. remain constant.
D. increase and then sharply decrease more.
A. increase.
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The different combinations of any two goods that an individual can afford to purchase, given his income and prices, is shown by:
a. an indifference curve. b. an indifference map. c. a budget line. d. a demand curve. e. a supply curve.
Refer to the payoff matrix below.Player 1Player 2??t1t2t3?S120,015,15,-100?S220,20010,05,-50Which of the following pairs of strategies constitutes a Nash equilibrium of the game?
A. S1, t2 and S2, t1 B. S1, t1 C. S1, t2 D. S2, t1
What is a market failure?
A) It refers to the inability of the market to allocate resources efficiently up to the point where marginal social benefit equals marginal social cost. B) It refers to the inability of the market to allocate resources efficiently up to the point where marginal social benefit equals marginal private cost. C) It refers to a situation where an entire sector of the economy (for example, the airline industry) collapses because of some unforeseen event. D) It refers to a breakdown in a market economy because of widespread corruption in government.
Because of market power, wages are higher under monopsony than under competitive conditions
Indicate whether the statement is true or false