In the simple Keynesian model, equilibrium exists when
a. actual investment equals realized investment.
b. exports equal imports.
c. savings is equal to government spending plus desired investment minus taxes.
d. national product is equal to consumption minus desired investment plus government spending.
e. None of the above
C
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Refer to the scenario above. In the dominant strategy equilibrium, the payoff to Firm B is ________
A) $1.2 million B) $3.0 million C) $2.5 million D) $2 million
The elasticity of demand for gasoline is likely to be relatively low in the short term and higher as the period of time gets longer.
Answer the following statement true (T) or false (F)
Suppose that the supply curve remains unchanged. If the demand curve shifts to the right
A) the market clearing price definitely will decrease. B) the market clearing price definitely will increase. C) there will be no change in the market clearing price. D) the market will collapse.
A community of 100 persons wants to redistribute (transfer) some income from themselves to members of group A. So far, they don't seem to be able to do what they say they want to do. This is most likely because each member of the community of 100 persons sees his contribution as __________________ relative to the total (of contributions) and therefore chooses to be a __________________
A) large; rent-seeker B) small; rent-seeker C) small; free rider D) large; free rider E) none of the above