Based on the answer of question 4, the payoffs for both stores will be
a. Megastore $95 and Superstore $80
b. Megastore $305 and Superstore $55
c. Megastore $65 and Superstore $285
d. Megastore $165 and Superstore $115
d
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The economic concept of scarcity refers to the fact that:
A. the United States will always have a battle to fight hunger. B. resources are often wasted and shortages are often the result. C. income must be redistributed through taxation in order to address income disparity. D. limited resources require economies to make choices among production alternatives.
Subsidies are payments made by the government of a country to:
a. foreign firms to encourage imports from the country in question. b. foreign firms to boost their exports. c. domestic firms to encourage exports. d. domestic firms to encourage imports. e. domestic consumers to encourage consumption of imported goods.
A major implication of asymmetric information is that:
A. health care suppliers may reduce the supply of health care. B. health care suppliers may increase the demand for health care. C. collusion between health care suppliers and purchasers may accelerate the rise in costs. D. resources may be underallocated to the health care industry.
Refer to the table below. The balance on the financial account was a:
The following table contains hypothetical data for the U.S. balance of payments in a year. Answer the following question on the basis of these data. All figures are in billions of dollars. U.S. goods exports +$390 U.S. goods imports -498 U.S. service exports +133 U.S. service imports -107 Net investment income +12 Net transfers -22 Capital account -5 Foreign purchases of U.S. assets +156 U.S. purchases of foreign assets -59 The following table contains hypothetical data for the U.S. balance of payments in a year. Answer the following question on the basis of these data. All figures are in billions of dollars. U.S. goods exports +$390 U.S. goods imports -498 U.S. service exports +133 U.S. service imports -107 Net investment income +12 Net transfers -22 Capital account -5 Foreign purchases of U.S. assets +156 U.S. purchases of foreign assets -59 A. $92 billion surplus B. $97 billion surplus C. $92 billion deficit D. $97 billion deficit