Economic profit is most closely associated with:
A. the process of saving and investing.
B. monopoly, innovation, and uninsurable risks.
C. long-run competitive equilibrium.
D. a static economy.
Answer: B
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Refer to the scenario above. If both nations decide to trade, which of the following statements is true?
A) Hawaii should export both tea and coffee. B) Hawaii should import both tea and coffee. C) Hawaii should export tea and South Carolina should export coffee. D) Hawaii should export coffee and South Carolina should export tea.
How does a dominant strategy equilibrium occur in a simultaneous move game?
What will be an ideal response?
If workers expect inflation, and tend to overestimate actual inflation when they negotiate wage increases, the result will be a continuing
a. shift of AD to the left. b. shift of AD to the right. c. recessionary gap. d. inflationary gap.
Large or persistent inflation is almost always caused by
a. excessive government spending. b. excessive growth in the quantity of money. c. foreign competition. d. higher-than-normal levels of productivity.