Refer to the table below. Because the extent of variation in the price of the input is ________ in Country B compared to Country A, it is less risky to plan to purchase the input in Country ________.
The above table provides the probability distribution of price of an input next year in Country A and Country B.
A) lower; A
B) greater; A
C) greater; B
D) lower; B
B) greater; A
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Federal Reserve Chairman Ben Bernanke once said if all else fails, the Fed could drop money from helicopters to help the US economy. If "helicopter Ben" ever comes to the rescue and begins dropping money from the sky, the will be engaged in
A) shenanigans. B) expansionary monetary policy. C) operation financial Armageddon. D) contractionary monetary policy.
If MiiTunes and The Rock Shop are both in the music business and faced with the choices outlined in the figure, we can predict the outcome will be that:
This figure displays the choices and payoffs (company profits) of two music shops-MiiTunes and The Rock Shop. MiiTunes is an established business in the area deciding whether to charge its usual high prices or to charge very low prices, in the hopes that a new business will not be able to make a profit at such low prices. The Rock Shop is trying to decide whether or not it should enter the market and compete with MiiTunes.
A. MiiTunes charges high prices and The Rock Shop does not enter.
B. there is more than one stable outcome to this game.
C. there is no stable outcome to this game.
D. None of these statements is true.
Refer to Figure 4-4. The figure above represents the market for iced tea. Assume that this is a competitive market. Which of the following is true?
A) Both 10,000 and 30,000 are economically inefficient rates of output.
B) If the price of iced tea is $3, consumers will purchase more than the economically efficient output.
C) If the price of iced tea is $3, the output will be economically efficient but there will be a deadweight loss.
D) If the price of iced tea is $3, producers will sell 30,000 units of iced tea but this output will be economically inefficient.
A tariff is
A. a tax on imports. B. a tax on exports. C. a payment by the government to an exporter. D. a legal limit on the amount of a good that may be imported.