In the absence of national monetary policy and national exchange rates in the European Monetary Union,
A. the Union will have to expel members who do not agree to austerity measures.
B. the Union has challenges responding to the range of domestic imbalances in different member countries.
C. the Union cannot survive.
D. the Union will have to be bailed out by the European Central Bank.
Answer: B
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If there is no pure strategy Nash equilibrium in a complete information game, there is a mixed strategy equilibrium, and if there is no mixed strategy equilibrium, there is a pure strategy equilibrium.
Answer the following statement true (T) or false (F)
In a constant-cost industry, a decrease in price causes:
A. some firms to exit the industry. B. quantity supplied to remain constant. C. some firms to enter the industry. D. price controls.
The shut-down decision is a short-run decision.
Answer the following statement true (T) or false (F)
Greatland and Superland both produce 5 million watches in a year. The opportunity cost of producing one watch is 2 shirts in Greatland, and the opportunity cost of producing one watch is 3 shirts in Superland
Which of the following statements is true? A) Superland has a comparative advantage in producing watches. B) Superland has an absolute advantage in producing watches. C) Greatland has a comparative advantage in producing watches. D) Greatland has an absolute advantage in producing watches. Consider two economies, Beta and Zeta. Each farmer in Beta can grow 1,000 pounds of apples in a year or 500 pounds of oranges. Each farmer in Zeta can grow 400 pounds of apples or 1,200 pounds of oranges in a year.