When prices fall and the cash balances that you hold in your wallet are worth more allowing you to purchase more with your money, then this explains why the aggregate demand curve is downward sloping. The effect that describes this phenomena is the:
A. Real balances effect
B. Foreign trade effect
C. Interest rate effect
D. Nominal income effect
A. Real balances effect
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Marginal revenue product is defined as the extra:
a. output a firm would receive after hiring one more unit of resource. b. cost of hiring one more unit of resource c. revenue earned by selling one more unit of product. d. revenue earned by hiring one more unit of resource e. output received by spending one more dollar on resources
Which of the following is true? a. A Nash equilibrium maximizes a player's welfare, regardless of the behavior of a competitor while a dominant strategy maximizes a player's welfare, given the actions of its competitor. b. A Nash equilibrium maximizes a player's welfare, given the actions of its competitor, while a dominant strategy maximizes a player's welfare, regardless of the behavior of
its competitor. c. A Nash equilibrium is just another name for a dominant strategy. d. A Nash equilibrium may or may not be a self-enforcing equilibrium.
Which of the following is a way in which a government could encourage spending on research and development?
a. Increase the tax rate on capital gains b. Enhance patent protection c. Decrease funding to universities d. Increase the tax on corporate profits e. Increase the budget deficit
Writer Thomas Friedman asserts that "America is the greatest engine of innovation that has ever existed and it can't be duplicated anytime soon, because"
A. of its extreme freedom of thought. B. of its emphasis on independent thinking. C. of its steady immigration of new minds. D. of all of the factors listed.