Refer to the information provided in Table 14.6 below to answer the question that follows.
Table 14.6B's Strategy
?AdvertiseDon't Advertise??A's profit $150 millionA's profit $400 million?AdvertiseB's profit $150 millionB's profit $100 millionA's Strategy????Don'tA's profit $100 millionA's profit $200 million?AdvertiseB's profit $400 millionB's profit $200 millionRefer to Table 14.6. What is the Nash equilibrium in the game?
A. (Don't Advertise, Don't Advertise)
B. (Don't Advertise, Advertise)
C. (Advertise, Don't Advertise)
D. (Advertise, Advertise)
Answer: D
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If disposable income falls by $50 billion and consumption falls by $40 billion, then the slope of the consumption function is
A) 1.20. B) 0.80. C) 0.70. D) 0.10.
An increase in the money supply should cause the expenditure schedule to shift upward
a. True b. False Indicate whether the statement is true or false
It is generally more profitable for a firm to pay workers more than the going wage rate:
A. in areas in which turnover is not very costly. B. in sectors where skills are scarce. C. in industries in which worker motivation doesn't really matter. D. All of these are true.
The difference between positive statements and normative statements is that
A) a positive statement involves a value judgment and a normative statement is a statement of fact. B) a positive statement is a statement of fact and a normative statement involves value judgments. C) value judgments are made in normative statements but assumed in positive statements. D) normative statements are provable while positive statements are not.