A Nash equilibrium is defined as
A) earning zero economic profit in the long run.
B) forming a cartel with strong penalties for cheaters.
C) relying on other game players to realize the benefit of cooperation.
D) each player taking the best possible action given the action of the other player.
E) each player taking the action that is best for all the players.
D
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The slope of the saving function is the
A) APC. B) MPC. C) APS. D) MPS.
Refer to Figure 27-12. An increase in government purchases of $200 billion causes aggregate demand to shift ultimately from AD1 to AD2
Assuming a constant price level, the difference in real GDP between point A and point B will be ________ $200 billion. A) less than B) equal to C) greater than D) There is insufficient information given here to draw a conclusion.
If the price of a firm's product is $12 and the firm faces a constant marginal cost of $5 that is equal to its (constant) average total cost, the profit from selling a unit of the firm's product from its inventory is equal to ________.
A) $5 B) $7 C) $8 D) $15
What happens as the result of a surplus?
A) There is downward pressure on prices. B) There is upward pressure on prices. C) Consumers begin to view the good as an inferior good because it is too commonplace. D) Demand for the good increases.