A recession is a period of time in which the total output of the economy falls
a. True
b. False
Indicate whether the statement is true or false
True
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If a Cournot duopolist announced that it will double its output
A) it becomes the leader. B) the other firm does not view the announcement as credible. C) the other firm will shut down. D) the other firm will double output also.
Denise is thinking about setting up a butterfly garden in her backyard. She estimates that it will cost her $2,000 to purchase and install special plants and an irrigation system to attract butterflies. The benefit she expects to receive is $1,800 . In addition, neighbor Billy will receive a benefit of $150 and neighbor Sammy will receive a benefit of $100 . From this, we can conclude that:
a. butterflies are a negative externality for Billy and Sammy. b. Denise will set up the butterfly garden without any help from her free-rider neighbors. c. if Sammy refuses to contribute to the butterfly garden, he will be unable to enjoy its benefits if it is built. d. if Billy refuses to contribute to the butterfly garden, Denise will not have one. e. if Billy and Sammy contribute the amounts at which they value the butterfly garden, Denise will set it up.
According to the expenditure approach, the largest component of GDP is:
a. government spending. b. proprietor's income. c. net interest. d. personal consumption expenditures. e. compensation of employees.
At a price of $15 each, Marta buys 4 books per month. When the price increases to $20, Marta buys 3 books per month. Luz says that Marta's demand for books has decreased. Is Luz correct?
A) Yes, Luz is correct. B) No, Luz is incorrect. Marta's demand has increased. C) No, Luz is incorrect. Marta's quantity demanded has decreased, but her demand has stayed the same. D) No, Luz is incorrect. Marta's quantity demanded has increased, but her demand has stayed the same. E) No, Luz is incorrect. Marta's quantity demanded has decreased and her demand has increased.