Prices usually reflect
a. only the value of a good to society.
b. only the cost to society of making a good.
c. both the value of a good to society and the cost to society of making the good.
d. neither the value of a good to society nor the cost to society of making the good.
c
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In the Nash equilibrium of a prisoner's dilemma:
A. there is unrealized opportunity for both to gain. B. both players have equal payoffs. C. there is no cash left on the table. D. total economic surplus is maximized.
A natural monopoly occurs when
A) one firm owns all the vital resources needed to produce a particular good. B) economies of scale allow one firm to supply the entire market at the lowest possible cost. C) a few firms collude to act as a single firm. D) one firm captures all the consumer surplus.
Would a union of all the restaurant workers in your area be more or less successful at winning wage increases without suffering employment losses than a union of all the pizzeria workers in your area? Explain
The real business cycle theory
A. is an extension of the adaptive expectations theory of business cycles. B. suggests that instability is caused by shifts in the aggregate demand curve caused by changing consumer confidence in the economy. C. suggests that instability is caused by shifts in the long-run aggregate supply curve. D. is an extension of the Keynesian view of business cycles.